New Delhi, June 22: Defence Minister Rajnath Singh has said that Micro, Small and Medium Enterprises (MSMEs) are emerging as an important pillar of India’s defence manufacturing sector and are playing a crucial role in transforming the country from a major importer of defence equipment into a self-reliant producer of military hardware. He emphasised that the growing participation of MSMEs in defence production is strengthening the country’s strategic autonomy and accelerating the vision of Aatmanirbhar Bharat.
MSMEs Becoming Backbone of Defence Manufacturing
Speaking at an event organised by the Confederation of Indian Industry (CII), the Defence Minister said MSMEs have become an integral part of the defence supply chain and are making significant contributions in the production of advanced technologies and military platforms. He noted that these enterprises are not only supporting large defence manufacturers but are also driving innovation, creating employment opportunities and boosting exports. Rajnath Singh stressed that the government is committed to creating an enabling ecosystem for MSMEs through policy reforms, ease of doing business and enhanced access to technology and finance.
Record Defence Production Reflects Indigenous Push
Highlighting India’s growing self-reliance in defence, Rajnath Singh said the country has achieved a record defence production of ₹1.78 lakh crore in the financial year 2025-26, marking a major milestone in indigenous manufacturing. He credited the achievement to the combined efforts of public sector undertakings, private industry, start-ups and MSMEs, which have collectively strengthened India’s defence industrial base. The Defence Minister asserted that the government is continuously working towards reducing dependence on imports while encouraging domestic innovation and production.
Private Sector and MSMEs Driving Innovation
The Defence Minister underlined that India’s defence manufacturing landscape has undergone a significant transformation over the past decade, with increasing participation from the private sector and MSMEs. He said the government’s objective is to further increase the share of private industry in defence production and create a robust ecosystem capable of designing and manufacturing world-class defence systems. According to official data, the private sector now contributes nearly a quarter of India’s total defence production, with a substantial share directed towards exports.
Focus on Self-Reliance and Future Readiness
Rajnath Singh reiterated that self-reliance in defence is not merely an economic objective but a strategic necessity in an increasingly uncertain global security environment. He stressed that India must develop indigenous capabilities across all critical technologies to remain future-ready and safeguard its national interests. The Defence Minister said the government’s continued emphasis on innovation, technological advancement and industry participation will ensure that India emerges as a major global hub for defence manufacturing in the years to come.
Defence Industry Poised for Further Growth
With record production figures, increasing exports and the growing involvement of MSMEs and private companies, India’s defence sector is witnessing unprecedented growth. Analysts believe that sustained policy support and investment in research and development could further accelerate this momentum, helping India achieve its long-term goal of becoming not just a major defence buyer but a leading defence manufacturer and exporter on the global stage.