Budget 2022: Defence Budget upped by 68%

New Delhi, Feb 01: The Defence Procurement Budget has been raised by 68 per cent, Finance Minister, Nirmala Sitharaman announced today. The announcement was made during the Union Budget and is aimed at encouraging a more self-reliant defence sector.

"68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbhart," Sitharaman announced. She also said that the Defence Research and Development will be opened for industry, startups and academia.

The private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with the DRDO, the finance minister also announced.

This is an important announcement considering the threat that is posed by both India and China. The Indian Army has been in a standoff with Chia since 2020 along the Line of Actual Control in Eastern Ladakh.