Military commanders such as Vice Admiral Rajesh Pendherkar of the Eastern Naval Command (ENC) have acknowledged the importance of Micro, Small, and Medium Enterprises (MSMEs) in India’s defence production. He underlined that one of the main objectives of the government’s Atmanirbhar Bharat program is to increase India’s self-reliance in military production, and MSMEs are essential to this effort.
MSMEs play a key role in lowering India’s reliance on imports for defence. In order to achieve self-sufficiency in this area, they play a vital role in the local manufacturing of defence equipment. Approximately 8,000 MSMEs are now engaged in defence production; in order to increase exports and manufacturing capacity, this number is expected to treble to 16,000 MSMEs.
The MSME sector is promoting innovation by creating specialised goods for the Indian military. This entails working together with bigger defence firms and taking part in several government programs such as the Technical Development Fund (TDF) and the Innovation for Defence Excellence (iDEX). These programs offer MSMEs financial and technical support to enable them to more successfully enter the defence sector.
MSMEs contribute significantly to India’s general economic growth in addition to defence. They create a significant number of job possibilities and account for about 30% of India’s GDP. There has also been a notable increase in the government’s budgetary allotment for the MSME sector, suggesting a determination to support this market even more.
Market Integration: The potential of many Indian MSMEs is limited by their incomplete integration into the defence supply chain.
Operational Challenges: For smaller businesses, the particular demands of defence manufacturing might be intimidating. Common problems include keeping production lines running without constant orders and meeting operational requirements.
Support Needed: To assist MSMEs in successfully navigating these obstacles and continuing their operations in the defence industry, there is an urgent need for mentorship from larger businesses.
As India strives for increased indigenisation by 2047, the ENC chief’s comments highlight a growing understanding of the critical role MSMEs will play in the country’s defence scene. With further government assistance and more MSMEs joining the market, there is hope for reaching important milestones in
