MoD spends 65% of FY22 capital budget on domestic procurement
- IBEF
- April 21, 2022
On April 20, the Ministry of Defence (MoD) announced that it had met its target of spending 64% of the capital acquisition budget on the domestic industry in FY22.
In order to accomplish Prime Minister Mr. Narendra Modi's goal of 'Aatmanirbhar Bharat,' 65.5% of the capital acquisition budget was spent on indigenous procurements through the Indian industry.
Furthermore, according to the March 2022 preliminary expenditure report, the MoD was able to use 99.5% of the defence services budget in FY22. In FY23, the MoD intends to spend 68% of its capital budget on the domestic industry.
In her Budget statement to the Parliament, Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, said that defense R&D will be opened up for business, entrepreneurs, and academia with 25% of the defence R&D budget earmarked.
Private industry would be encouraged to design and develop military platforms and equipment in partnership with the Defence Research and Development Organization (DRDO) and other organisations using the SPV model. An independent nodal umbrella body will be established to address a variety of testing and certification needs.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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