Governmentt exceeds target of indigenous defence procurement
News: The government has overachieved its target of indigenous defence procurement and utilised 65.5% (vs. budgeted target of 64%) of capital acquisition budget for FY22 (i.e. Rs 74,015 crore of revised budget of Rs 1.13 lakh crore) on procurements through the Indian industry. The MoD has also been able to utilise 99.5% of the defence services budget in FY22.
Views: For FY23, the government has allocated 68% of the defence capital expenditure budget (i.e. Rs 84,598 crore) for domestic procurement. It has till now released lists of over 650 defence items slated to be manufactured locally, which include Light Combat Aircraft (LCA), Tanks, Vehicles, Submarines, Missiles, Satellites, Corvette, Radars, Avionics etc. As per government estimates, orders worth ~ Rs 7 lakh crore are likely to be placed in the next five to seven years as part of these items.