Telangana’s micro, small and medium enterprise (MSME) base, serving the aerospace and defence sector, has expanded sharply over the past decade, growing from a little over 400 firms to around 2,000. The state now believes its ecosystem is well positioned to serve both domestic procurement and export markets as India pushes to deepen local manufacturing in strategic sectors.

“Over the last ten years, the MSMEs supplying to aerospace and defence have grown from 400-plus to around 1,500-2,000. It is a significant jump…This ecosystem is well poised to take all opportunities coming up, both in terms of exports as well as domestic procurement,” a senior state government official told news agency ANI.

Telangana Director for Aerospace and Defence Praveen PA also highlighted the strong manufacturing network built by the state on the sidelines of the second edition of the Defence MSME Manufacturers Forum organised by the Indian Chamber of Commerce in Hyderabad. He noted that Telangana had long been an important centre for the country’s missile, aerospace and defence industries.

Telangana strengthens defence ecosystem

State minister Uttam Kumar Reddy insisted in May this year that Telangana was on course to become the undisputed aerospace and defence capital of India by 2030. The government has reportedly identified these two sectors as a priority under its industrial policy — with around 1,500 MSMEs currently part of the aerospace and defence supply chain ecosystem.

The Telangana government is now looking to strengthen this growth by identifying dedicated land parcels for the sector and by supporting smaller companies that want to enter global supply chains. The broader aim is to help MSMEs scale up, become more competitive, and position themselves for international business opportunities.

Krishna Aditya S, Special Secretary in Telangana’s Department of Industries and Commerce, said the state already benefits from a strong industrial base built around defence public sector undertakings and their ancillary units.

“Telangana already carries a vibrant ecosystem in which multiple defence PSUs have strengthened the presence of ancillary units and MSME segments,” he told ANI.

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He said the government’s immediate focus is to make the sector more export-oriented. “The intent is to focus on more export orientation by providing all possible support to the MSME units,” he added.

‘Make in India for the World’: Hyderabad forum backs MSMEs to drive India’s defence manufacturing and exports

Indian Chamber of Commerce Director General Rajeev Singh said Hyderabad is one of India’s biggest defence and aerospace hubs, and that greater MSME participation can deepen domestic manufacturing capabilities. The forum, he said, is intended to help build a stronger supplier base that can integrate with larger industry requirements.

“We are going to speak about how to develop the MSME base which can integrate into the larger picture of manufacturing and developing components,” Singh said. He added that closer collaboration between large companies and smaller manufacturers could help India reduce dependence on imports and expand defence exports.

The discussion took place at a forum held under the theme, “Make in India for the World: Empowering MSMEs for India’s Defence and Aerospace Future.” The theme reflected a wider policy push to build a more self-reliant defence manufacturing ecosystem while opening new international opportunities for Indian suppliers.

Defence, drones and exports: Telangana charts growth roadmap with MSME-led manufacturing

Telangana is stepping up its defence and aerospace push with a mix of budget support, policy incentives and new industrial projects aimed at turning the state into a major manufacturing hub. The government has unveiled a Rs 100-crore MSME technology upgradation fund, backed by plans to support skills development and industry modernisation, while also pursuing larger investments such as JSW Defence’s proposed Rs 800-crore unmanned aerial systems facility and a proposed Hyderabad-Bengaluru Defence and Aerospace Corridor to deepen the regional supply chain.

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The state says the sector’s momentum is already visible on the ground. Telangana’s aerospace and defence exports have risen sharply, MSMEs from the state are feeding global supply chains, and officials say the long-term goal is to make Telangana a preferred destination for defence manufacturing, with the government also seeking to accelerate projects like the Integrated Weapon System Complex at Devarakadra and expand the industrial ecosystem around Hyderabad.