68% of India’s capital procurement budget earmarked for domestic industry in 2022 – 2023: Finance minister

By Shuriah Niazi

NEW DELHI (AA) - India’s Finance Minister Nirmala Sitharaman announced Tuesday that 68% of the capital procurement budget would be earmarked for the domestic industry in 2022 - 2023, up from 58% in 2021-2022.

Sitharaman presented the annual budget Tuesday in Parliament and said the Defense R&D (Research and Development) will be opened up for industry, startups and academia with 25% of the Defense R&D budget earmarked.

“Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO (Defense Research and Development Organisation) and other organizations through SPV (Special Purpose Vehicle) model,” she said, adding that an independent nodal umbrella body will be set up to meet wide-ranging testing and certification requirements.

Sitharaman said India’s economic growth in the current year is estimated to be 9.2%, the highest among all large economies.

“The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience,” she said.

Sitharaman also announced the introduction of the Digital Rupee that will be issued by the Reserve Bank of India starting in 2022-2023.

She said the Central Bank Digital Currency will give a big boost to the digital economy.

The digital currency will also lead to a more efficient and cheaper currency management system, according to Sitharaman.

She said income from digital asset transfers will be taxed at a rate of 30%.

The main opposition Congress party slammed the announcement as a "zero-sum budget."

"M0di G0vernment's Zer0 Sum Budget! Nothing for - Salaried class, Middle class, the poor and deprived, Youth, Farmers and MSMEs," leader Rahul Gandhi wrote on Twitter.