Ministry of Defence (MoD) had earmarked 64 per cent of the Capital Acquisition Budget for the domestic industry in Financial Year (FY) 2021-22. At the end of FY 2021-22, MoD has been able to overachieve this target and has utilised 65.50 per cent of the Capital Acquisition Budget on indigenous procurements through Indian Industry to achieve Prime Minister Shri Narendra Modi’s vision of ‘Aatmanirbhar Bharat‘.
This also shows that MSMEs’ development in the defence category is also a priority that Government is working upon. Union Minister of Defence, Government of India, Shri Rajnath Singh have made it clear that there will be no compromise on India’s defence mechanism and he also have mentioned that MSMEs are integral part of the Defence manufacturing ecostystem.
Further, as per the preliminary expenditure report of March 2022, MoD has been able to utilise 99.50 per cent of the Defence Services Budget in FY 2021-22.