The Defence Ministry announced on Friday that 25% of the domestic capital procurement budget, amounting to more than Rs. 21,000 crore will be earmarked for private industry]ies in the financial year of 2022-23.
Further, to foster innovation and encourage the development of defensive technology, it has also been decided that Rs. 1500 crore will be earmarked for procurement from startups. This includes Innovations for Defence Excellence (iDEX) startups from within the allocations for domestic capital procurement.
These allocations are made to foster the growth of private industries, MSMEs and start-ups in the defence ecosystem.
Earlier, the Ministry of Defence had decided to earmark 68% of the capital procurement budget for the entire domestic industry during the financial year of 2022-23. Accordingly, more than Rs. 84,000 Crore was allocated specifically for the domestic defence industry in the current financial year.