Defence industry, startups and academia can now access defence research and development with an allocation of 25 percent defence R&D budget, declared by the Finance Minister, Nirmala Sitharaman, for the Union Budget 2022-23.

The Union Budget for Fiscal Year 2022-23 has pushed for the modernization of defence services and the creation of defence security infrastructure, such as border road infrastructure and coastal security infrastructure.

According to the budget for 2022, the SPV model will encourage private industry to collaborate with DRDO and other entities to design and manufacture military platforms and equipment.

It further said that an independent nodal umbrella agency would be established to meet a variety of testing and certification criteria.

The government has pledged to reduce imports and promote AtmaNirbharta in military equipment. Domestic industry would get over 68 percent of the capital procurement budget in 2022-23, up from 58 percent in 2021-22.

The Union Budget for 2022-23 proposes a total outlay of Rs. 39.45 lakh crore, of which the Ministry of Defence will receive Rs. 5.25 lakh crore, or 13.31 percent of the overall budget.

This includes a sum of Rs. 1.19 lakh crore set aside for military pensions. The total Defence Budget is up by 46,970 crore (9.82 percent) from the Budget Estimates for 2021-22.

The Defence Services' total capital outlay allocation has been enhanced from 86,740 crore in 2013-14 to 1.52 lakh crore in 2022-23. According to the budget, there would be a 76 percent increase over the next nine years.

Furthermore, the overall Defense Budget, including Defense Pensions, has climbed by 107.29 percent throughout this time, rising from 2.53 lakh crore in 2013-14 to 5.25 lakh crore in 2022-23, according to the report.

Defence Minister Rajnath Singh said in a series of tweets that the Budget would stimulate 'Make in India,' raise demand, and create capacities for a stronger, wealthy, and confident India.

“Congratulations to Finance Minister, Smt @nsitharaman on presenting an excellent Union Budget for 2022-23. It is a Budget that would give a fillip to 'Make in India', boost demand and build capacities for a stronger, prosperous, and confident India.#AatmanirbharBharatKaBudget”, tweeted Singh.