Make In India In The Defense Sector: Govt Has Already Indicated
Make in India in the defense sector: the government has already indicated and there is hope for a special emphasis on the Defense sector. You must have recently read or heard reports of a confrontation between the Indian and Chinese forces on the Line of Actual Control (LAC) in eastern Ladakh.
In view of this, it is expected that the Government of India can make an unprecedented increase in the allocation in the defense sector in the budget of 2021-22. However, it is expected that the government will give special emphasis to Make in India in the defense sector as well.
This was indicated only in May 2020 when Finance Minister Sitharaman announced raising the foreign direct investment (FDI) limit in the defense sector from 49 per cent to 74 per cent through the automatic route.
Along with this, she said that some weapons and platforms would not be allowed to be imported. “We will issue a list of weapons and platforms, which will not be approved for import,” he said. As we develop our capabilities, new weapons and platforms will be added to this list year after year. ”
Finance Minister Nirmala Sitharaman had increased the defense sector budget by six percent in the Union Budget for the year 2020-21. The central government had increased the defense budget from Rs 3.18 lakh crore to Rs 3.37 lakh crore.
In the current fiscal budget, an allocation of Rs 1,10,734 crore was made for the modernization of the army and the purchase of new and modern weapons. Sitharaman had said in her last budget speech, “National security has always been one of the top priorities of the government”.
Her statement is significant and analysts are expecting a significant increase in the defense budget, given the recent deadlock on the border with China.
Keeping in mind the regional risks and needs, India has increased its defense budget significantly in the last few years. At the same time, India has laid great emphasis on modernization of army and other armed forces.
