The increase in capital procurement budget to 68% for domestic in the DEFENCE sector is expected to increase output from Rajkot, the hub of engineering units, many of whom are engaged in making parts for defence equipment. There are at least 300 small and big units making parts fordefence equipment, according to industry sources in Rajkot.
Over the last few years, the engineering units of Rajkot are bagging contracts from the Indian Railways as well as the defence ministry.
TheUnion budgetalso proposed to open up research and development for industry and startups in the defence sector.
The FM proposed revoking anti-dumping duty and countervailing duty (CVD) on stainless steel and coated steel flat products, bars of Alloy steel and high speed steel. This will also help the local engineering units, especially those making kitchenware and hardware industry.