Budget 2023: Modi govt to increase defense allocation

Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2023 on February 1. One of the key sectors, defence, is expecting a mega boost in the budget this year. It is expected that the there will be an increase in the amount allocation by 10 to 15 percent — to increase the domestic production of the defence equipment. The boost in the expenditure of the defence sector will help the industry further in its push for 'Make in India'.

The major focus this year is on Research and Development in the defence sector. Industry experts have pushed for a space-based production linked incentive (PLI) scheme for space-tech startups to help boost local manufacturing.It is expected that there would be a hike in the amount allocated in the budget for the procurement of new equipment as well as R&D. It will help the industry induct new technology in the sector and expand the export of defence equipment. The Micro, Small and Medium Enterprises (MSMEs) in the defence sector are also expected to get more attention in the Budget 2023.