Indian Finance Minister Arun Jaitley announced today that the government would allocate a budgetary estimate of INR 2.46 trillion (US$40.02 billion) in defense sector for the fiscal 2015-16.
"So far we have been dependent on imports with attendant to ample spinoffs. Our government is already permitted FDI in defense so that Indian controlled entities also become manufacturers of Defense equipment not only for us but for export," Jaitley said while presenting Union Budget for the financial year 2015-16.
"We are thus pursuing the 'Make in India' policy to achieve greater self-sufficiency in the area of defense equipment, including aircraft. We have been both transparent and quick in making defense equipment related purchase decisions. This year keeping our defense forces ready for any eventuality," he added.
The defense budget emphasizes greater focus on indigenous capabilities with relatively better allocation to DRDO, OFB and creation of initial corpus for technology development fund to assist SMEs.
Jaitley had allocated INR 2.29 trillion ($41.66 Billion) for the defense spending for the fiscal year 2014-15.