The Defense Minister has highlighted that MSMEs are safeguarding national interests by strengthening defence capabilities at National Defence Industries Conclave 2026.
Role of MSMEs in Defense Sector
- Cutting-Edge Technologies
- Unmanned Systems & Drones:ideaForge supplies the Indian Army with UAVs for high-altitude transport and border surveillance.
- In the maritime and ground sectors, EyeROV and Sagar Defence Engineering build underwater and surface drones.
- Cyber Defence & Communications: Companies like QNu Labs, QpiAI, and Signalchip are delivering solutions ranging from space surveillance to quantum-secure communications.
- Aerospace & Surveillance: Startups like NewSpace focus on aerospace technology for stratospheric operations and sensor fusion.
- Unmanned Systems & Drones:ideaForge supplies the Indian Army with UAVs for high-altitude transport and border surveillance.
- Suppliers of Critical Sub-Systems: MSMEs currently produce vital parts for defence platforms, including missiles, ships, vehicles, and aircraft.
- Service Providers in MRO: MSMEs are increasingly fulfilling a growing segment of MRO services required to maintain military aircraft and vehicles.
Steps Taken to promote MSMEs
- Funding: The all-time high allocation of Rs 7.85 lakh crore to the Ministry of Defence in the Union Budget 2026-27 provides opportunities of MSMEs.
- Schemes: Innovations for Defence Excellence (iDEX) and the Technology Development Fund (TDF).
- The Department of Defence Production established a dedicated scheme to promote MSMEs, offering financial sponsorships.
Status of MSMEs in Defence Sector of India
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