In the fiscal year 2022-23, the value of defence production in India surpassed Rs one lakh crore for the first time, marking a significant milestone in the country’s journey towards self-reliance in the defence sector.
The government has taken proactive steps to bolster indigenous design, development, and manufacturing of defence equipment by promoting the participation of Micro, Small, and Medium Enterprises (MSMEs) and start-ups.
This information was given by Minister of State Ajay Bhatt in a written reply to Prataprao Jadhav and others in Lok Sabha today.
The minister said that these policy initiatives have not only encouraged ease of doing business but also paved the way for technological advancements and a thriving defence industrial manufacturing ecosystem.
Supporting MSMEs and Start-ups:
To drive innovation and technology development in defence and aerospace, the government launched the Innovations for Defence Excellence (iDEX) initiative in April 2018. iDEX has been instrumental in engaging industries, including MSMEs and start-ups, providing them with grants, funding, and support for carrying out research and development activities related to futuristic technologies. This enthusiastic response from the industry has fostered the design, development, and manufacturing of cutting-edge defence equipment, resulting in a boost to the entire defence sector and the generation of employment opportunities.
Empowering MSMEs in Defence Supply Chain
Recognizing the crucial role of MSMEs in the defence supply chain and their potential to contribute significantly to defence exports, the Ministry of Defence introduced a scheme to promote MSMEs in the defence sector. Collaborating with Industry Associations and stakeholders from different regions, the government has organized workshops and seminars to enhance the participation of MSMEs in the defence supply chain. This initiative not only strengthens India’s self-reliance in defence but also opens up new avenues for economic growth and global partnerships.
Special Provisions for MSMEs and Start-ups
The Defence Acquisition Procedure (DAP) 2020 incorporates special provisions to incentivize and encourage MSMEs and start-ups. By offering them preferential treatment under certain conditions, the DAP 2020 has facilitated their integration into the defence manufacturing landscape. Additionally, the Public Procurement Policy for MSEs Order, 2012, implemented at Defence Public Sector Undertakings (DPSUs), gives price preference to MSME bidders, further promoting their active involvement in defence projects.
Indigenisation through ‘Srijan Portal’
In a significant step towards indigenisation, DPSUs and services have uploaded more than 30,000 defence items on the ‘Srijan portal for indigenisation.’ These items are offered to the industry, including MSMEs, to participate as partners in the indigenisation process. This collaborative approach fosters self-reliance, reduces dependency on imports, and strengthens India’s capabilities in developing critical defence technologies.
By empowering MSMEs and start-ups through initiatives like iDEX, the Ministry of Defence has harnessed the potential of these enterprises to drive technological advancements and contribute significantly to defence manufacturing. With continued support and collaboration, India is poised to become a global leader in defence production, bolstering national security and economic growth in the process.