+

Indian Government prioritises local companies in Defence budget

The Indian government, under the leadership of Defence Minister Rajnath Singh, has taken significant steps to boost the country’s defence manufacturing and promote self-reliance. One of the notable decisions is the allocation of 75% of the defence capital acquisition budget, which amounts to approximately Rs one lakh crore, for purchasing products from local companies. This […]

The Indian government, under the leadership of Defence Minister Rajnath Singh, has taken significant steps to boost the country’s defence manufacturing and promote self-reliance. One of the notable decisions is the allocation of 75% of the defence capital acquisition budget, which amounts to approximately Rs one lakh crore, for purchasing products from local companies. This strategic move is aimed at bolstering domestic industries and ensuring a steady demand for their products.

Minister Rajnath Singh emphasised the importance of supporting Micro, Small, and Medium Enterprises (MSMEs) in the defence sector. He highlighted the government’s commitment to promoting indigenous manufacturing and self-reliance. The Minister also pointed out that this government was the first to impose restrictions on the import of weapons, demonstrating a strong focus on domestic production.

To facilitate the localization of defence production, the government has released five “positive indigenization lists.” These lists comprise 509 different types of equipment that will now be manufactured within India. This is a significant step toward reducing dependence on foreign defence suppliers and enhancing the capabilities of local industries.

Moreover, four “positive indigenization lists” have been issued specifically for defence Public Sector Undertakings (DPSUs). These lists encompass 4,666 items that will be manufactured in the country. This move will not only stimulate the domestic defence sector but also contribute to the nation’s self-reliance.
Minister Singh stressed that these initiatives are designed to strengthen MSMEs and make them “Aatmanirbhar,” which translates to “self-reliant” in Hindi. The focus on MSMEs in the defence sector is crucial for boosting local manufacturing, generating employment, and reducing the country’s reliance on foreign defence equipment.

In addition to these efforts, the government has launched the “Innovations for Defence Excellence” (iDEX) initiative. iDEX is aimed at inviting new ideas and innovations in defence manufacturing, with a particular focus on engaging startups and innovators. This initiative reflects the government’s commitment to embracing cutting-edge technologies and solutions to enhance the defence sector.

To further support startups in the defence industry, Minister Singh announced the launch of “iDEX Prime.” This program is intended to provide financial support to projects that require funding beyond Rs 1.5 crore up to Rs 10 crore. By backing such initiatives, the government aims to foster innovation and propel the growth of startups in the defence sector.

In summary, the Indian government, led by Defence Minister Rajnath Singh, is taking substantial steps to boost the domestic defence industry and reduce dependence on foreign suppliers. These initiatives include allocating a significant portion of the defence budget for local purchases, issuing indigenization lists, and promoting innovation through iDEX. These efforts are not only expected to enhance the nation’s defence capabilities but also strengthen MSMEs and promote self-reliance in the defence sector.

Tags: