DEFENCE SECTOR

India’s Defence budget for FY 2022-23 stands at USD54.20 billion (Rs 4,05,470.15 crores) after excluding
the component of the Defence pensions and is primarily focused towards the upkeep and modernization of
an operational Armed Forces . The capital outlay, which focuses towards the modernization of Armed
Forces has been increased by 12.82 percent with an allocation of USD20.36 billion (Rs 1,52,369.61
crores). In recent times, the Defence budget has also been sensitive to the need for establishing a
technological framework to advance growth of a vibrant indigenous military manufacturing infrastructure.
For this self-reliance initiative, 68% of the capital procurement has been proposed to be earmarked for
domestic industry, up from 58% in 2021-22. Here, a whopping 25% of the R&D budget has been earmarked
for industry, start-ups, and academia.
• Defense is one of the most important sector for any country so more spending in this sector will lead a country
to be more stronger.
• 68 per cent of capital procurement budget for defense will be embarked for domestic companies to promote
Aatmanirbhar Bharat and reduce dependence on Import of defense equipment. This is up from 58 per cent last
fiscal year.
• Our govt. Is committed to reduce imports in equipment for armed forces defense R&D will be opened up for
the industry startups and academic with 25 per cent of the defense R&D budget embarked.