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<\/p>\nIndia has reserved 63 per cent of its capital allocation in the defence budget for local procurement, the country’s defence minister said on Monday.<\/p>\n
Last month, India announced a total defence budget of nearly $ 65.4 billion, including a capital expenditure of 135,060 crores Indian rupee (approximately $18.5 billion).<\/p>\n
“My Ministry has planned to invest about 63% of the outlay for 2021-22 on domestic procurement, i.e, about 70,221 crores Indian rupee [approximately $ 9.29 billion] for domestic defence procurement during for 2021-22,” Rajnath Singh said while speaking at a webinar organised by the Department of Defence Production and Society of Indian Defence Manufacturers.<\/p>\n
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The minister said that the increase would have a positive impact on “enhanced domestic procurement, having a multiplier effect on our industries including MSMEs [Micro, Small, and Medium Enterprises] and start-ups.”<\/p>\n
“It will also increase employment in the defence sector,” he said. Last year, India’s defence ministry said it had bifurcated the capital procurement budget for 2020-21 “between domestic and foreign capital procurement routes.”<\/p>\n
Then, it also reserved nearly $7 billion for domestic defence procurement. “A separate budget head has been created with an outlay of nearly 52,000 crores Indian rupees [approximately $7 billion] for domestic capital procurement in the current financial year,” the government said in August.<\/p>\n
Last year, India also announced an import embargo on 101 defence items as part of the government’s plan of self-reliance. Analysts’ opinions, however, are mixed on how much self-reliance India will achieve.<\/p>\n","protected":false},"excerpt":{"rendered":"
India has reserved 63 per cent of its capital allocation in the defence budget for<\/p>\n","protected":false},"author":1,"featured_media":5134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-5133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\n