New Delhi, In continuation with Government’s efforts to promote private industry, Micro, Small and Medium Enterprises (MSMEs) and start-ups in defence production ecosystem, the Ministry of Defence (MoD) 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.
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 defence ecosystem.
Earlier, the MoD had decided to earmark 68 per cent 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.