New Delhi:
Defense Minister Rajnath Singh on Tuesday described as an “excellent move” the proposal in the Union’s budget to allocate 25 percent of its defense R&D budget to start-ups and private entities in fiscal year 2022-23.
Mr Singh also welcomed Finance Minister Nirmala Sitharaman’s announcement that 68 percent of the defense capital procurement budget would be allocated to domestic industry procurement.
“The 68 percent of the defense capital procurement budget has been allocated to local procurement. It is in line with the ‘Vocal for Local’ push and it will certainly boost the domestic defense industry,” tweeted Mr Singh.
The 68 percent of the budget for procurement of defense capital is allocated to local procurement.
It’s in line with the ‘Vocal for Local’ push and it will definitely boost the domestic defense industry.
— Rajnath Singh (@rajnathsingh) February 1, 2022
He said significant amounts have been allocated to research and development in various sectors, including defense.
“The proposal to allocate 25 percent of the R&D budget to startups and private entities is an excellent move,” said the defense minister.
In her budget speech to parliament, Ms Sitharaman said the government is committed to reducing imports and promoting self-reliance in armed forces equipment.
“Sixty-eight percent of the capital buyback budget will be allocated to domestic industry in 2022-23, up from 58 percent in 2021-22,” she said.
The finance minister said defense research and development will be opened up to industry, start-ups and academia, with 25 percent of the defense R&D budget.
“The private industry will be encouraged to take on the design and development of military platforms and equipment in collaboration with DRDO and other organizations through the SPV (special purpose vehicle) model,” she said.
Ms Sitharaman said an independent umbrella body will be established to meet broad testing and certification requirements.
“Congratulations to the Finance Minister, Smt @nsitharaman on presenting an outstanding Union budget for 2022-23. It is a budget that would boost ‘Make in India’, boost demand and build capacity for a stronger, more prosperous and more confident India,” said Mr Singh.
He said the budget outlines the government’s focus on ‘Atamnirbharata’ and Prime Minister Narendra Modi’s vision of development and reform for the people.
“It is a growth-oriented budget that is geared towards harnessing the energies of New India,” said Mr Singh.
In the budget speech of the Minister of Finance, no mention was made of the general figures on the defense budget.