Defence: 75% capital to be spent on domestic procurement

February 16, 2023

Bandhan Ceremony was conducted at the AERO INDIA air show. During the ceremony, the Memorandum of Understanding (MoUs) and technology transfer agreements were signed by DRDO. Also, private defence companies launched their products and made key announcements. Defence Minister Shri Rajnath Singh was the chief guest of the ceremony. While addressing the ceremony, the minister said that India is to spend 75% of its defence capital on “procurement” in 2023-24. In 2022-23, this was 68%. In this year’s budget, the defence sector received Rs 5.94 lakh crores. This is 13.18% of the total budget.

Bandhan Ceremony

More than 266 partnerships were forged
201 MoUs signed; HAL and SAFRAN Helicopter of France MoU, BEL and IWBC MoU, HAL and ELTA of Israel MoU, etc.
53 major announcements made
Three Technology transfer agreements signed
Nine new defence products launched

Budget and plans

In the 2023-24 budget, Rs 5.94 lakh crores were allocated to the defence sector. This includes Rs 1.38 lakh crores of pension.
The budget allocation for defence increased by 12.9% compared to 2021-22. The previous year’s budget allocated to the defence sector was Rs 5.25 lakh crores.
In 2022-23, 68% of the defence capital was used on indigenous sources. So far, the defence ministry has not planned its allocation towards this for this year.

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