NewsGate Press Network

In a significant announcement made on Friday the 8th of April 2022, the central government decided to promote Private Industry, MSMEs and Start-ups in defence production with an increase of 25% of Domestic Capital Procurement/ Acquisition Budget, amounting to Rs. 21,149.47 Crore.

This will be earmarked for Domestic Private Industry in the Financial Year 2022-23.

In a release issued by the MoD. it was also 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, the release said.

Earlier, Ministry of Defence had decided to earmark 68% 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.