How Are 16,000 MSMEs Transforming India’s Defence Sector?
Click to start listening
Synopsis
Discover how approximately 16,000 MSMEs are revolutionizing India's defence sector, bolstering self-reliance and contributing to record-breaking production figures. The government's initiatives and investments are paving the way for a robust indigenous defence industry poised for global competitiveness.
Key Takeaways
- 16,000 MSMEs are transforming India's defence landscape.
- India aims for Rs 3 lakh crore in defence production by 2029.
- Defence budget increased from Rs 2.53 lakh crore to Rs 6.81 lakh crore.
- Exports grew by 12.04% compared to FY24.
- Defence Industrial Corridors attracted over Rs 9,145 crore in investments.
New Delhi, Nov 19 (NationPress) Approximately 16,000 MSMEs are stepping up as transformative forces, enhancing India's self-reliant defence capabilities, according to a government release on Thursday.
"From drones to avionics and advanced electronics, various enterprises, both large and small, are contributing significantly, with 16,000 MSMEs emerging as key players," the statement noted.
The growth in Indian industry participation in defence manufacturing is evident with 788 industrial licenses granted to 462 companies, reflecting the rapid expansion in this sector.
India achieved a record defence production of Rs 1.54 lakh crore in FY25 and is poised to reach Rs 1.75 lakh crore in the ongoing fiscal year.
The nation has set a target of hitting Rs 3 lakh crore in defence production by 2029, further solidifying its position as a global hub for defence manufacturing.
The domestic production in defence showcased a remarkable 174% increase in FY24 compared to Rs 46,429 crore in 2014-15, thanks to the government's Atmanirbhar Bharat initiatives in the defence sector, as per the statement.
The escalation of the defence budget, from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26, illustrates the government's commitment to bolstering the nation's military infrastructure.
Public Sector Undertakings and other PSUs contributed around 77% of production, while the private sector's share increased to 23% in FY25, marking a 2% YoY growth.
India is currently exporting defence products to over 100 countries and experienced a growth of Rs 2,539 crore, or 12.04%, compared to FY24 figures, the statement added.
Two Defence Industrial Corridors located in Uttar Pradesh and Tamil Nadu have attracted investments exceeding Rs 9,145 crore, with 289 MoUs signed and a potential of Rs 66,423 crore in opportunities as of October 2025, as noted in the statement.
Policy reforms include streamlined Defence Acquisition Procedures, promoting indigenous production via positive indigenisation lists, liberalised FDI, a Rs 1 lakh crore Research, Development and Innovation (RDI) scheme, and measures to enhance exports to Rs 50,000 crore by 2029.
Point of View
The emergence of 16,000 MSMEs in India's defence sector signifies a remarkable shift towards self-reliance. This advancement enhances India's strategic autonomy while creating numerous job opportunities. It underscores the potential of indigenous innovation, reflecting a commitment to a robust national defence framework that aligns with global standards.
NationPress
20/11/2025
Frequently Asked Questions
What role do MSMEs play in India's defence sector?
MSMEs are becoming vital contributors to India's defence capabilities by providing innovative solutions and products, thereby enhancing self-reliance in the sector.
What is the current target for India's defence production?
India aims to achieve a defence production target of Rs 3 lakh crore by 2029, further establishing itself as a global defence manufacturing hub.
How much has India's defence budget increased over the years?
India's defence budget has risen significantly, from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26, showcasing the government's commitment to strengthening military infrastructure.
How many defence products does India export?
India currently exports defence products to over 100 countries, with exports growing by Rs 2,539 crore, or 12.04%, compared to previous fiscal year figures.
What investments have been made in Defence Industrial Corridors?
Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu have attracted investments exceeding Rs 9,145 crore, with numerous MoUs signed and substantial potential opportunities.
