New Delhi, September 1. Defence Minister Rajnath Singh has called on India’s micro, small and medium enterprises (MSMEs) to increase investments in research and development, technology upgradation and workforce skills, while forging stronger partnerships with academia, research institutions and industry to emerge as globally competitive enterprises.
Addressing an MSME event in Greater Noida on September 1, Singh said India’s vision of ‘Viksit Bharat@2047’ (Developed India by 2047) envisages a country that is globally competitive in manufacturing, technologically advanced and self-reliant in its strategic and economic capabilities, while generating adequate employment opportunities for its growing workforce.
He urged MSMEs to set aside a part of their turnover for research, development and technology modernisation and collaborate with universities, IITs, research organisations, DRDO laboratories, startups and large industries to develop new products and technologies.
Supply-chain shifts offer major opportunity
Singh said the ongoing restructuring of global supply chains and the international demand for dependable manufacturing partners have opened a significant window of opportunity for Indian MSMEs.
He pointed to the government’s efforts to expand India’s trade partnerships with major economies, including through free trade agreements with the US, UK, New Zealand, Oman, Switzerland and the European Union.
These agreements, he said, could provide Indian businesses with greater access to international markets and should be fully leveraged by MSMEs and industries.
Singh also referred to measures such as the expansion of credit guarantees and GST rationalisation aimed at creating a more favourable business environment. He called upon manufacturers to adopt the principle of ‘Make in India, Make for India, and Make for the World’ and expand the global footprint of Indian products.
MSME base expands sharply
The Defence Minister highlighted the expansion of India’s formal entrepreneurial ecosystem, noting that the number of MSMEs had risen from around 4.67 crore in 2012-13 to approximately eight crore at present.
He said the growth reflected the increasing scale and dynamism of India’s MSME sector and its expanding contribution to the country’s economic development.
Singh particularly highlighted the opportunities emerging for smaller companies in defence manufacturing, where government initiatives such as Innovations for Defence Excellence (iDEX) and ADITI (Acing Development of Innovative Technologies with iDEX) are helping startups, innovators and MSMEs develop advanced technologies for the armed forces.
He urged entrepreneurs to look beyond the traditional role of component suppliers and regard defence manufacturing as an avenue for developing intellectual property, advanced technologies and globally marketable products.
Among the areas offering significant opportunities, he identified drones, artificial intelligence, robotics, cybersecurity, advanced electronics, sensors, autonomous systems, advanced materials, space and quantum technologies.
Quality and skills as important as technology
Singh cautioned that technology alone would not be sufficient to make Indian MSMEs globally competitive. Equal emphasis, he said, would have to be placed on product quality, skills, technology modernisation, access to markets and finance.
He stressed that Indian companies would have to establish their reputation internationally through quality and reliability, particularly in the defence sector, where the failure of even a single component can affect the operational effectiveness of military platforms and systems.
The defence manufacturing ecosystem, he said, must therefore adhere to the principles of “zero defect” and “zero compromise on quality”.
The Defence Minister also called for greater investment in industry-oriented skills and continuous training and upskilling of MSME employees to keep pace with changing technologies and production requirements.
Greater access to advanced manufacturing technologies
Singh advocated making technologies such as digital manufacturing, automation, artificial intelligence and modern production systems more affordable and accessible to MSMEs.
He identified market access as another critical factor in helping smaller enterprises achieve scale and encouraged greater participation of MSMEs in government procurement, the supply chains of major industries and international export markets.
Finance, he said, remained perhaps the most critical requirement for MSME expansion. While stressing the need for timely and affordable credit, he also called for financial discipline and sound business practices among enterprises.
Singh identified technology, quality, skills, market access and finance as five essential pillars for strengthening the competitiveness of Indian MSMEs and enabling them to contribute to the Viksit Bharat@2047 vision.
Uttar Pradesh emerges as defence manufacturing hub
The Defence Minister highlighted the importance of the MSME ecosystem in North India, particularly across manufacturing, engineering, automobiles, electronics, defence, textiles, food processing and services.
He said the Defence Industrial Corridor in Uttar Pradesh had opened new opportunities for companies in the defence sector and was helping the state evolve from being primarily a large market into an important manufacturing and defence-industrial hub.
Singh called upon MSMEs in Uttar Pradesh, Uttarakhand, Delhi and Haryana to capitalise on the emerging opportunities and move up the value chain – from being suppliers to larger defence companies to becoming technology developers, system suppliers and exporters in their own right.
Focus on entrepreneurship and job creation
Singh also stressed the need to encourage India’s youth to become job creators rather than job seekers, describing entrepreneurship as an important instrument of nation-building.
He called for expanding economic opportunities for women and young people and developing smaller cities and towns as new centres of economic activity and growth.
The Defence Minister said achieving the goal of Viksit Bharat by 2047 would require a collective effort involving the government, industry, MSMEs, startups, academia and civil society.
He emphasised that the growth of India’s MSME sector would be closely linked to the country’s broader economic and industrial progress.
