as well as notify its second negative arms imports list next month, as part of the measures to build a robust defence industrial base, said defence minister
has planned to invest about 63% of the outlay for 2021-22, about Rs 70,221 crore, on domestic procurement. This increase will have a positive impact on enhanced domestic procurement, having a multiplier effect on our industries, including MSMEs and start-ups. It would also increase employment in the defence sector,” said Singh.
Speaking at the webinar on the effective implementation of the Union Budget’s provisions in defence, he also announced that the second negative arms import list will add to the first one notified in August last year, under which acquisition of 101 weapon systems and platforms were progressively banned from December 2020 to December 2025.
The defence ministry is also working to speed up arms acquisitions by ensuring that the entire process from grant of “acceptance of necessity (AoN)” to inking of the final contract is completed within two years. “India plans to spend $130 billion on military modernisation in the next five years,” said Singh.
Listing out the various initiatives undertaken by the government to bolster domestic defence production, the minister said they had resulted in “a staggering 700% growth in defence exports in the last six years”. India has entered into the list of top 25 exporters in the world, as per data published by the Stockholm International Peace Research Institute (SIPRI) in 2020, he added.
“The most important factor that is going to drive the domestic industry is
or ‘Aatmanirbhar Bharat’. We understand that this may lead to higher initial costs. The long-term importance of indigenisation in defence manufacturing dictates that we will willingly take on this short-term impact, to build Indian defence industry for the future,” he said.
Keeping this objective in mind, the defence ministry has set a target to achieve a turnover of Rs 1,75,000 crores ($ 25 billion), including export of Rs 35,000 crore ($5 billion) in aerospace and defence goods and services by the year 2024, he added.
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