Indian defence budget focuses on technology at home
This picture shows the fifth Kalvari-class submarine, the future INS Vagir, which started its sea trials on 1 February. (Indian Navy)
India’s new defence budget sees slow but steady growth for the coming year, despite the tensions it is experiencing with China and Pakistan.
In a move to encourage local manufacturing to enhance modernisation and infrastructure development, India’s planned annual defence budget (April 2022 till March 2023) has allotted a target of 68% of capital procurement to domestic industry.
This figure is up from 58% in last year’s budget. Most of this still goes to state-run companies but, with a thrust to encourage the private sector, it is likely a larger portion will be allotted to it compared to the past.
Announced on 1 February, the 2022 defence outlay of INR5.25166 trillion ($70.4 billion) represents a 4.4% nominal increase over last year’s final expenditure.
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