India earmarks 25 pc of Domestic Capital Procurement budget for Domestic Private Industry

India earmarks Rs 21,149 crore which is 25 per cent of its domestic capital procurement Budget for domestic private Industry in the financial year 2022-23.

New Delhi: In continuation with government’s efforts to promote private Industry, MSMEs and start-ups in defence production ecosystem, the Ministry of Defence has now decided that 25 per cent of domestic capital procurement/acquisition Budget, amounting to Rs. 21,149.47 Crore, will be earmarked for domestic private Industry in the financial year 2022-23, said a statement from the Ministry.

Further, to foster innovation and encourage technology development in Defence, it has also been decided that an amount of Rs. 1,500 Crore will be earmarked for procurement from start-ups, including iDEX Start-up, from within the allocations for domestic capital procurement. These steps will foster the growth of private industry, MSMEs and start-ups in the Defence ecosystem, it said.

Earlier, Ministry of Defence had decided to earmark 68 per cent of capital procurement budget for the entire domestic industry during the financial year 2022-23. Accordingly, an amount of Rs. 84,597.89 crore was allocated specifically for the domestic defence industry in current financial year.