The value of defence production in the financial year (FY) 2022-23 has crossed the figure of one lakh crore rupees for the first time, Union Minister of State for Defence Ajay Bhatt on Friday informed the Lok Sabha.  

In the last few years, the government has taken several policy initiatives and brought in reforms to encourage indigenous design, development and manufacture of defence equipment by Indian Industry including MSMEs and start-ups, thereby promoting ease of doing business in defence manufacturing & technology in the country.

Government promotes participation of MSMEs/start-ups for development of defence technology under various schemes like Innovations for Defence Excellence (iDEX), Technology Development Fund (TDF), Make procedure under Defence Acquisition Procedure (DAP) 2020. 

The DAP 2020 provides special provisions to encourage MSMEs and Start-ups. Moreover, Public Procurement Policy for MSEs Order, 2012 has been implemented at DPSUs under which the price preference is given to MSME bidders under certain conditions. Further, DPSUs and services have uploaded more than 30,000 defence items on ‘Srijan portal for indigenisation’ and offered them to Industry including MSMEs to become partners in indigenisation process.

Further, Innovations for Defence Excellence (iDEX) was launched in April, 2018 to foster innovation and technology development in Defence and Aerospace by engaging Industries including MSMEs/start-ups. iDEX provides grants/funding and other support to carry out R&D activities for futuristic technologies. The industries including the MSMEs and start-ups have given an enthusiastic response to iDEX for defence innovation works including design, development and manufacturing of Defence equipment. iDEX has given boost to defence industrial manufacturing ecosystem by promoting formation of Start-ups by individual innovators, and supporting sustenance to existing Start-ups/MSMEs. This has also led to the generation of employment opportunities.

Moreover, to bring MSMEs into the defence supply chain and thereby boost the self-reliance in defence sector in the country and also to contribute towards defence exports, Ministry of Defence has made a scheme of promotion of MSMEs in defence. Under this scheme, workshops/seminars are organised in collaboration with Industry Associations and other stakeholders from different parts of the country.