Big boost for indigenous development of defence systems in Budget 2022

New Delhi [India], February 3 : Union Budget 2022-23 has introduced multiple provisions to boost Atmanirbharta in the defence sector. The integrated approach of design and development of defence systems with the participation of industry and academia will revitalise the defence ecosystem, according to the budget presented by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday.
The provision for the formation of a Special Purpose Vehicle (SPV) for design development and production of major defence equipment will enable concurrent engineering and production in faster timelines.
The major announcement of 25 per cent of the budget earmarked for engagement of industry, startups and academia will provide the much-required boost for defence R and D. These provisions will enable Defence Research and Development Organisation (DRDO) to work vigorously with industry to give a quantum jump to self-reliance in defence.
The 5.3 per cent increase in capital budget allocation for DRDO up from Rs 11,375 crores to Rs 11,981.81 crores will accelerate the efforts for indigenous research & development (R&D) projects. The provision of 68 per cent of the capital procurement budget for the domestic defence industry will further enhance the induction of the indigenous system in our armed forces.
DRDO has multiple modes of engagement with industry and academia. Some of them are extramural research, directed research, DcPP and TDF for the development of advanced technologies and systems.
DRDO engages industry as Development Cum Production Partner (DcPP), Development Partners (DP), Production Agency (PA) during the execution of projects and programmes. Currently, about 20,000 industries are engaged in the development of various systems, sub-systems and technologies directly and indirectly.
DRDO has also identified 108 systems and subsystems for exclusive design and development by the Indian industry. DRDO technically supports the industry for realizing these systems on a requirement basis.
Through its Technology Development Fund (TDF) scheme, DRDO extends financial support to enable Indian Micro, Small and Medium Enterprises (MSMEs) and startups for indigenous design and development of defence products, components and subsystems.
The fund is utilized for developing new technologies as required by DRDO, services, and DPSUs.
To further encourage the Indian industry, DRDO's patents and relevant intellectual publications are available for the domestic industry free of cost. Indian industry is also utilizing DRDO test facilities and proof and field firing range for ensuring quality defence products.
The initiative announced in budget 2022 regarding a nodal umbrella body for wide-ranging requirements of testing and certifications of defence systems will greatly accelerate the development of defence systems by industry and will ensure the provisioning of quality products to armed forces.
DRDO is working with more than 250 academic institutes on different defence R&D problems for basic, applied and targeted research. It has established 10 advanced research centres in various academic institutions.
DRDO is also proposing to set up chairs for specific areas in various universities for long term engagement with academic institutions. The current production value of the DRDO developed system is approximately Rs 3.2 lakh crore.
With the announcement of Special Purpose Vehicle (SPV) and other important provisions, production value can grow exponentially. This budget has made a strong focus on Atmanirbharta, which will ensure that all major platforms are indigenously developed.