Bengaluru, Feb 16 (IANS): Describing the Aero India Show 2023 as a great success, Defence Minister Rajnath Singh announced on Wednesday that to provide impetus to the Indian defence industry, 75 per cent procurement for the armed forces will be made from indigenous defence companies.

Addressing a gathering at the valedictory ceremony of Aero India Show here, Singh said that in the last few years, the respect for the Indian defence industry is increasing.

"The good will is so much that the cap of reservation of 68 per cent for FY 2022-23 for Indian defence vendors will be increased to 75 per cent in FY 2023-24. I repeat, three-fourth procurement will be from Indian defence vendors. It will amount to Rs 1 lakh crore," Singh said.

"If you take one step towards strengthening the security of the country, the government's promise is that it will come forward to take 10 steps. The industry has asked for land, we have given the vast sky with full confidence," he said.

In the initial years, the defence industry was given 58 per cent procurement in the Budget. But, exceeding the limit, the procurement reached 64 per cent in 2021-22. The government had faced flak and criticism for this. In 2022-23, the share was increased to 68 per cent," he explained.

Singh also said the Aero India Show will go a long way in strengthening the Indian defence industry.

"This is a new beginning. It has showcased that the Indian defence industry is ready to collaborate with other countries of the world. As many as 1,500 MoUs have been signed in the show, DRDO technology transfer agreements have been made, important decisions have been taken regarding manufacturing in private and public sector industries. The show has given a push to the defence industry at the global level," the minister said.