Exemption from basic customs duty on import of defence equipment not manufactured in India will augment defence budget with over Rs 25000 crores over the next five years, said Defence Minister Rajnath Singh on Friday.
"In a significant development, import of Defence Equipment not manufactured in India exempted from Basic Customs Duty. It'll have an impact of augmenting the Defence Budget by Rs 25,000 crores on account of savings in expenditure on Customs Duty over the next 5 yr", read a post on the official Twitter handle of the office of Raksha Mantri.
Union Finance Minister Nirmala Sitharaman had made the announcement while presenting Union Budget 2019-20 in the parliament on Friday, citing the immediate requirement for modernization and upgradation of defence equipment as a national priority.
"Defence has an immediate requirement of modernization and upgradation. This is a national priority. For this purpose, import of defence equipment that are not being manufactured in India are being exempted from basic customs duty," Sitharaman said.
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