Union Budget 2022 - AtmaNirbharta in Defence
The Union Budget 2022, announced by Finance Minister Nirmala Sitharaman displays a strong focus on the domestic defence industry. The government has committed to reduce imports and promote AtmaNirbharta in equipment for the Armed Forces. 68 per cent of the capital procurement budget will be earmarked for domestic industry in 2022-23, up from 58 per cent in 2021-22.
Defence Minister Rajnath Singh welcomed this and tweeted “The 68 percent of defence capital procurement budget has been allocated towards local procurement. It is in line with the ‘Vocal for Local’ push and it will certainly boost the domestic defence industries.”
Additionally, the Finance Minister stated that the Defence R&D will be opened up for industry, startups and academia with 25 per cent of defence R&D budget earmarked. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model. An independent nodal umbrella body will also be set up for meeting wide ranging testing and certification requirements.