Budgetary support to Defence sector to remain government’s priority

Two Defence industrial production corridors to be developed

Government to bring out industry friendly Defence production policy 2018

Ensuring adequate budgetary support to the Defence Sector will be the priority of the Government. Presenting the General Budget 2018-19 in Parliament today, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitely said that a lot of emphasis has been given to modernizing and enhancing the operational capability of the Defence Forces over the last three and a half years. The Finance Minister appreciated the stellar role played by the Armed Forces in meeting the challenges on the country’s borders as well as in managing the internal security environment both in Jammu and Kashmir and the North East.

A number of initiatives have been taken to develop and nurture intrinsic defence production capability to make the Nation self-reliant for meeting our defence needs, the Finance Minister explained.

Shri Arun Jaitely said that private investment in defence production has been opened up including liberalizing foreign direct investment.  The Government will take measures to develop two defence industrial production corridors in the country. The Government will also bring out an industry friendly Defence Production Policy 2018 to promote domestic production by public sector, private sector and MSMEs, he said.

Budgetary support to defence prioritized; industry-friendly defence production policy to boost domestic manufacturing and private participation. Ensuring adequate budgetary support to the defence sector is declared a government priority to support modernization and indigenous production. The Government opened private investment and liberalised foreign direct investment in defence production, will develop two defence industrial production corridors, and will issue an industry friendly Defence Production Policy 2018 to promote domestic production across public sector, private sector and MSMEs.