Consider reduction in corporate tax to 15% for defence SMEs: Puneet Kaura

Allocation for defence should be increased by 100 basis points; the allocation has been stagnant at 2.6 percent of GDP for last few years. The immediate need to increase the budget allocation is to meet advanced technology, infrastructure, toward support and personnel equipment needs of defence forces in line with global competition.  

In addition to increased allocation, the government should address the lack of integrated planning for procurement amongst armed forces in the budget. The Finance Ministry should form a committee to bridge the gap between different government departments to fast track allocation of defence orders. The committee can comprise of industry, Government representatives and strategic partners to be announced by the MoD.  This will help Government to solve our current predicament and achieve its Make in India dream in Defence.