Defence ministry earmarks 25 pc of domestic capital procurement budget for private industry

New Delhi, Apr 9: Defence Ministry has decided to earmark 25 per cent of domestic capital procurement and acquisition budget for private industry for the 2022-23 financial year. The 25 per cent of domestic capital procurement and acquisition budget amounts Rs. 21,149.47 Cr.

 

 

 

 

 

 

In continuation with the govt's efforts to promote Private Industry, MSMEs and Start-ups in defence production ecosystem, the Ministry of Defence has decided that 25 pc of Domestic Capital Procurement and Acquisition Budget, amounting to Rs. 21,149.47 Crore, will be earmarked for Domestic Private Industry in the financial year 2022-23.

 

 

 

 

 

 

Further, to foster innovation and encourage technology development in Defence sector, it has also been decided that an amount of Rs. 1,500 Cr will be earmarked for procurement from Start-ups, including iDEX Start-up, from within the allocations for Domestic Capital Procurement. These steps are expected to foster the growth of private industry, MSMEs and start-ups in the Indian Defence ecosystem.

 

 

Earlier, the Ministry of Defence had decided to earmark 68 pc of Capital Procurement budget for the entire domestic industry during financial year 2022-23. Accordingly, an amount of Rs. 84,597.89 Crore was allocated specifically for Domestic defence industry in current Financial Year.