Budget 2022: Atmanirbhar defence sector

Sayali Kotwal
Budget 2022:  Atmanirbhar defence sector

On Tuesday, FM Nirmala Sitharaman announced the Union Budget for FY22.

On Tuesday, FM Nirmala Sitharaman announced the Union Budget for FY22.  

The markets reacted positively to the Budget wherein, Sensex surged up to almost 974 points, marking the day’s high and is now at 58,159.13, up by 144.96 or 0.27 per cent higher than the last trading session.  

BSE Metal zoomed to 19,271.90 up by 1.51 per cent as the Budget announcement ended, with Tata Steel (up by 4.5 per cent), Vedanta, Jindal Steel, Hindalco, SAIL, and JSW Steel being the top gainers with no losers in this index.  

BSE Basic Materials index was up by 0.96 per cent at 5,624.32. The top five gainers were Gravita India, Andhra Paper, DB Realty, Godawari Power & Ispat Ltd, and Prime Focus. On the other hand, the top losers included Rajratan Global Wire, Emami Paper, Tata Steel, Sutlej Textiles and Tips Industries.  

Following the Atmanirbhar Bharat motto, FM announced that the defence sector was committed to reducing imports and becoming more self-reliant this year.  

It has been announced that 68 per cent of defence Capex is to be kept for procurement via domestic companies while 25 per cent of the defence R&D Budget is being earmarked for private industry, start-ups, and academia. The private industry has been boosted to design and develop military platforms and equipment in collaboration with DRDO and other organisations through the special purpose vehicles (SPVs) model. 

A new independent umbrella body is to be set up for private players to test new technology and acquire Defence Equipment Certification.  

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