Budget 2022: Big Boost for Indigenous Development of Defence Systems

The government is trying to develop self-dependence in the defence sector in India. This gets a clear reflection in the Budget 2022 which has introduced multiple provisions to boost Atmanirbharta in the defence sector.

A press statement released by the Ministry of Defence said, “The integrated approach of design & development of defence systems with the participation of industry & academia will revitalise the defence ecosystem. Provision for the formation of Special Purpose Vehicle (SPV) for design development & production of major defence equipment will enable concurrent engineering and production in faster timelines.”

It added, “The major announcement of 25% of budget earmarked for engagement of industry, startups & academia will provide the much-required boost for defence R&D. These provisions will enable Defence Research & Development Organisation (DRDO) to work vigorously with industry to give a quantum jump to self-reliance in defence.”

According to the Defence Ministry, the capital budget allocation for the DRDO is up by 5.3% and this will help increase the efforts for indigenous research.

“The provision of 68% of the capital procurement budget for the domestic defence industry will further enhance the induction of the indigenous system in our armed forces,” the Ministry said.

It added, “DRDO has multiple modes of engagement with industry and academia. Some of them are extramural research, directed research, DcPP and TDF for the development of advanced technologies and systems. DRDO engages industry as Development Cum Production Partner (DcPP), Development Partners (DP), Production Agency (PA) during the execution of projects and programmes.”