The Defence & Aerospace sector in India is at an inflection point, given the modernisation and indigenisation programs being undertaken by all the three services of the second largest military force in the world. India has the 5th largest defence budget in the world. The Defence sector is one of the key sectors under the “Make in India” initiative of the Government of India which has huge potential to boost manufacturing capability and employment in the country. The importance of the sector can be highlighted from the fact that the sector is poised to reach $ 26 billion by 2025 as per the Government projections.
MSMEs play a pivotal role in the defence manufacturing sector and act as incubation sector for defence technology. With an objective to improve the MSME ecosystem and boost the domestic A&D manufacturing in the country, GoI has been taking many steps. All these initiatives opens a plethora of opportunities for the MSMEs in defence manufacturing. Given the regulatory environment in the country coupled with the vision of Atmanirbhar Bharat, the time is ripe for the Indian MSMEs to enter defence and aerospace manufacturing.