On Wednesday, Defence Minister Rajnath Singh stated that there is now significantly more trust between the government and the Indian defence sector. As a consequence, he added, domestic vendors will now account for 75 percent of all purchases of weaponry, up from the current 68 percent. This 75 percent defence capital procurement budget will result in transactions worth around Rs 1 lakh crore.
“I believe the Indian defence industry is firmly on its path of strengthening. This is a new beginning with greater focus and emphasis on ‘Atmanirbhar’ or self-reliance and that has given India’s defence industry new energy and new commitment,” Singh said while addressing the Bandhan ceremony of Aero India 2023 in Banglore on February 15.
According to the reports, at least 250 Memorandums of Understanding (MoUs), including agreements for the transfer of technology to the Defence Research and Development Organization (DRDO) were inked at the event. “The trust of the government on our defence industry has increased so much in recent years that the share of procurement from Indian vendors will be increased to 75 per cent in the coming year from 68 per cent last year,” he added.
Speaking at ‘Bandhan’ and Valedictory Ceremony of #AeroIndia2023 in Bengaluru. https://t.co/bvj7t3HOXT
— Rajnath Singh (@rajnathsingh) February 15, 2023
The Ministry of Defence (MoD) has been given a budget of Rs 5.94 lakh crore for FY 2023–24, which is 13.18 percent of the overall budget (Rs 45.03 lakh crore). Also, the capital investment for infrastructure improvement and modernization has been raised to Rs 1.63 lakh crore.
The minister added that the Narendra Modi administration has gradually increased the proportion of armaments and ammunition purchased from local suppliers. It was raised from 64 percent in 2021–2022 to 65 percent, then to 68 percent in 2022–2023 and finally it has been raised to 75 percent in 2023–2024. “We have understood that if the Indian defence industry has to move forward, it has to be given encouragement. So it is imperative for us to assure the industry of a steady demand for the products they produce,” he said.
हमने 2021-22 के लिए Indian defence industry के लिए हिस्सा 64% कर दिया, पर इस बार पिछले record को तोड़ते हुए यह procurement 65% तक पहुँच गई। फिर इस बार, यानि 2022-23 के लिए हमने यह हिस्सा 68% कर दिया: रक्षा मंत्री
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) February 15, 2023
In the light of the fact that local defence industries were explicitly targeted, Singh said, the government had set aside 58 percent of the defence budget for capital purchases in the fiscal year 2020–2021. “It was a giant leap in favour of the Indian defence industry,” he said, adding that such a trend would continue.
The Minister stated optimism that with this move, the Indian industry would advance with greater zeal and help create a more robust and successful defense sector. He believed that a robust and self-sufficient defence sector not only improves the nation’s security system but also stimulates the economy. In accordance with Prime Minister Shri Narendra Modi’s vision of “Make in India, Make for the World,” he emphasized that in recent years, a domestic industry-friendly environment has been established in the nation, providing a runway for local businesses to grow and ensure holistic national development while meeting the security needs of friendly nations.
इस कदम के बाद हमारी defence industry, और भी अधिक जोश और उत्साह के साथ सामने आएगी, और देश के defence sector को और अधिक सशक्त और समृद्ध करने में अपना योगदान देगी। यह बड़ी खुशी की बात है, कि Aero-India 2023 इस अभूतपूर्व फैसले का साक्षी बना: रक्षा मंत्री
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) February 15, 2023
According to the official press release, the Bandhan event also saw the signing of 266 agreements, including 201 Memorandums of Understanding, 53 significant announcements, nine product launches, and three Technology Transfers, totaling almost Rs 80,000 crore. The nine product launched during the event include Jishnu- a Drone Delivered Missile, software defined GPS receiver, indigenously-built ‘Counter Drone Radar’ based on technology from DRDO, goniometer and more.
According to Singh, the MoUs signed at Bandhan would open the door for increased FDI in the defense industry and boost the sector’s production to new heights. He described Bandhan as a fresh resolve to support the country in the area of defense, rather than merely an agreement between two sides with an eye towards economic gain. He also emphasized that the alliances formed with friendly nations will advance their bilateral cooperation with India.
The Minister further claimed that Aero India showed the world the ‘New Defence Sector’ of the ‘New India,’ which has not only developed over the last several years but is now fully prepared to stand alongside the defense sectors of major nations. He declared himself happy that the occasion had cleared the way for the development of the Indian defense sector and referred to it as the start of a new age of ‘Aatmanirbharta.’ He exuded confidence that the industry will advance decisively down the road of growth with fresh vigor and resolve.
