Rajnath Singh has called upon Indian Micro, Small and Medium Enterprises (MSMEs) to increase investments in research and development, technology upgradation and workforce skills, urging them to transition from domestic suppliers to globally competitive technology developers, system suppliers and exporters.
Addressing an MSME event in Greater Noida, Uttar Pradesh, on Tuesday, Singh said the transformation of global supply chains and the search for reliable manufacturing partners have created a major opportunity for Indian industry.
He urged MSMEs to invest a portion of their turnover in R&D and technology modernisation and forge partnerships with universities, IITs, research institutions, DRDO laboratories, startups and large industries.
The Defence Minister said India’s manufacturing vision must be driven by the principle of “Make in India, Make for India, and Make for the World”, with Indian enterprises leveraging expanding international trade partnerships and export opportunities.
MSMEs Emerging as Key Pillars of Defence Manufacturing:
Highlighting the growing role of MSMEs in India’s defence industrial ecosystem, Singh said government initiatives such as Innovations for Defence Excellence (iDEX) and Acing Development of Innovative Technologies with iDEX (ADITI) are providing startups, innovators and MSMEs opportunities to develop advanced solutions for the Armed Forces.
He identified drones, Artificial Intelligence, robotics, cybersecurity, advanced electronics, sensors, autonomous systems, advanced materials, space and quantum technologies as high-potential areas for Indian MSMEs.
“Technology alone cannot drive the growth and global competitiveness of MSMEs,” Singh said, stressing that equal emphasis must be placed on quality, skill development, technology upgradation, market access and finance.
He called upon Indian MSMEs to establish their presence in global markets through quality and reliability, particularly in the defence sector where the performance of individual components can have a direct bearing on the operational effectiveness of the Armed Forces.
The Raksha Mantri stressed that the defence manufacturing ecosystem must remain committed to the principles of ‘Zero Defect’ and ‘Zero Compromise on Quality’.
Five Pillars for Global Competitiveness:
Singh highlighted five key areas critical to enabling MSMEs to scale up — technology, quality, skills, market access and finance.
He called for making advanced manufacturing technologies, including digital manufacturing, automation, AI-enabled systems and modern production techniques, more accessible and affordable to smaller enterprises.
Greater participation of MSMEs in government procurement, the vendor ecosystems of major industries and international export markets would also be essential to achieve scale, he said.
On finance, Singh described timely and affordable access to capital as a critical requirement for MSME growth, while underlining the importance of financial discipline and sound business practices.
Uttar Pradesh Emerging as Defence Manufacturing Hub:
Highlighting the strategic importance of North India’s MSME sector, Singh said the region has a strong industrial presence across manufacturing, engineering, automobiles, electronics, defence, textiles, food processing and services.
He said the Uttar Pradesh Defence Industrial Corridor has opened significant opportunities for defence manufacturing, positioning the state as an emerging hub of India’s defence and manufacturing ecosystem.
Singh urged MSMEs in Uttar Pradesh, Uttarakhand, Delhi and Haryana to leverage these opportunities and graduate from being component suppliers to large defence companies to becoming technology developers, system integrators, suppliers and exporters.
MSMEs Crucial to Viksit Bharat@2047:
The Raksha Mantri said the number of MSMEs has risen from around 4.67 crore in 2012–13 to approximately 8 crore, reflecting the growing depth of India’s entrepreneurial ecosystem.
He called for greater opportunities for youth and women entrepreneurs, while stressing the need to develop small cities and towns as emerging centres of economic growth.
Singh also urged the country’s youth to become job creators rather than job seekers, describing entrepreneurship as an important instrument of nation-building.
He said the vision of Viksit Bharat@2047 represents a globally competitive manufacturing base, technological leadership, innovation and self-reliance in strategic and economic capabilities.
“The vision of Viksit Bharat by 2047 is not merely a government objective but a collective aspiration, requiring joint efforts of government, industry, MSMEs, start-ups, academia and civil society. The progress of an MSME is the progress of India,” Singh said.
