New Delhi: The government is committed to reduce imports and promote self-reliance in the defence sector, Finance Minister Nirmala Sitharaman said on Tuesday.
Presenting the Union Budget 2022-23 in the Lok Sabha the Finance Minister said 68 per cent of the capital procurement budget for Defence will be earmarked for domestic industry to promote Aatmanirbhar Bharat and reduce dependence on imports of defence equipment. This is up from 58 per cent last fiscal.
Sitharaman also said that five per cent of Universal Service Obligation (USO) Fund would be provided for Research and Development and technology upgradation.
“Contracts for laying of optical fibre net to all villages under BharatNet to be provided under PPP mode,” she added.
Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with Defence Research and Development Organisation (DRDO) and other organisations through the special purpose vehicle (SPV) model, the Finance Minister added.
Further, she noted that risks of climate change are the strongest externalities for the world and a low carbon development strategy would open employment opportunities.
Mr. Chandrashekar, CMD, SASMOS HET Technologies LTD said , “The Union Budget 2022 has opened up an array of opportunity for home-grown defence manufacturing companies with the Government’s focus on curbing defence imports in India. The FM’s provision to earmark 68 per cent of capital for defence sector for domestic industry is a commendable move. The decision to invite industry, startups and academia in Defence R&D with 25% of R&D budget allocation will encourage like-minded people to come together and be part of the largest defence vision of the country, thereby, taking the Indian defence manufacturing to the next level. Overall, the budget addresses the need for sustained growth of defence manufacturers to support Make in India.”