The Ministry of Defense allocates 25% of the national capital purchase budget to private industry to promote start-ups
A Ministry of Defense statement said it had also been decided that an amount of Rs 1,500 crore would be earmarked for procurement from start-ups under the national capital procurement allocations.
Representative image. ANI
New Delhi: The Ministry of Defense has decided that 25% of the national capital procurement and acquisition budget amounting to Rs 21,149.47 crore will be earmarked for domestic private industry in 2022-23.
This is a continuation of the government’s efforts to promote private industry, MSMEs and start-ups in the defense production ecosystem.
A statement from the Ministry of Defense said that it had also been decided that an amount of Rs 1,500 crore would be earmarked for procurement from start-ups, including start-up iDEX, under the allowances for domestic capital supply.
This decision aims to foster innovation and encourage technological development in the field of defence.
The statement said that the Ministry of Defense has decided to allocate 68% of the capital purchase budget to the national industry in 2022-2023.
As a result, an amount of Rs. 84,597.89 crores has been allocated to the national defense industry in the current financial year.