Orders Worth INR 50K Crore Opened for Domestic Defence Manufacturing

New Delhi, India – The PHDCCI Defence & HLS Committee, in association with the Department of Defence Production, Government of India, TIDCO, and CODISSIA, organized a hybrid conference on ‘Opportunities for MSMEs in Defence Manufacturing and Exports’. The webinar focused on several government initiatives to indigenize and encourage innovation in sectors, as well as to shed light on the plethora of opportunities for MSMEs.

The webinar was supported by PHDCCI’s Annual Sponsors such as, Multani Pharmaceuticals Ltd; Star Wire; P G Industry; Uflex Ltd; DLF Ltd; Continental Carriers Pvt Ltd; Belair Travel & Cargo Pvt Ltd; Radico Khaitan Ltd; Jindal Steel & Power; MMG Group; Paramount Communications; Superior Industries Limited; JK Tyre & Industries Ltd; SMC Investments and Advisors Ltd; Crystal Crop Protection Ltd; Sagar Group of Industries; Samsung India Electronics; Comtech Interio; R E Rogers; AYUSH Herbs Private Ltd; Apeejay Stya Group; DCM Shriram; EaseMyTrip; Blossom Kochhar Beauty Products Pvt Ltd; Oswal Greentech; Trident Group; MV Cotspin Ltd; Synergy Environics Ltd; Ajit Industries Pvt Ltd; P S BEDI & Co.; Indian Farmer & Fertilizers Corporation Ltd; Jindal Steel; Hindware Sanitary; Modern Automobiles; Livit Ltd; Axa Parenterals; Bhagwati Plastic and Pipes Industries; J K Insurance Brokers Ltd; and DD Pharmaceutical Ltd.

Sanjay Jaju, Additional Secretary Defence Production and Chief Guest for the conference stated that MSMEs are the rising stars of any production manufacturing ecosystem, and the same is true for MSMEs in the defence sector. He also confirmed that orders worth INR 50K crore have been made available for domestic defence manufacturing.

Further he added that over 12,000 MSMEs are fueling the growth of the aerospace and defence sectors in order to create an Atmanirbhar Bharat. He praised the importance that the industry and industry associations place on improving the country’s defence manufacturing capabilities and insisted that the Government is encouraging procurement from domestic sources. The Government is committed to promoting MSMEs’ interest in the sector through various innovation projects and iDex.

Anurag Bajpai, Joint Secretary (DIP), Ministry of Defence, Government of India, stated that the Government of India is developing policies to strengthen the country’s defence production and R&D ecosystems while also creating a level playing field for the private sector. In line with Aatm Nirbhar Bharat’s mission, it has given a push to achieve self-reliance, with MSMEs playing a critical role.

The key objective of the defence offset policy, according to Praveen Kumar, DDG-DOMW, Department of Defence Production, Government of India, is to develop the Indian defence industry as a whole. The development of the Indian MSME through capital acquisitions and technology is critical for the development of India’s defence sector.

MK Gupta, Chairman, PHDCCI Defence & HLS Committee, mentioned that the Government has been able to drive key programs with speed to bridge critical asset gaps for the Armed Forces, which is the ‘primary objective’. However, much more is expected of the Indian Government in terms of addressing the ‘secondary objective’ of developing indigenous defence industrial capability in India and reducing reliance on imports.

Pankaj Kumar Bansal, IAS; Chairman & Managing Director, TIDCO, noted that the major opportunities for MSMEs in the defence sector include the Revenue Budget of Armed Forces, Innovations for defence Excellence, Technology Development Fund, Transfer of Technology from DRDO, International Collaboration due to negative import list, Make in India opportunities - Srijan Portal, and Export Opportunities.

MV Ramesh Babu, President, CODISSIA, indicated that the new policies are aimed at institutionalizing, streamlining, and simplifying defence procurement procedures in order to support the Make in India initiative, which aims to promote indigenous design and development as well as manufacturing of defence equipment platforms, systems, and subsystems. Policy reforms such as the draft DPP 2020, defence corridors, and tax incentives are expected to increase private sector participation in the defence sector.

According to Ashish Saraf, VP & Country Director-India, Thales, it is critical to recognize that the world’s MSME’s today provide an incredible amount of agility, innovation, and cost-benefit in an ever-changing world. MSMEs, with a low structural cost base, a smaller workforce, and agile management controlled by a small number of people, can make quick decisions and adapt to changes in the supply chain situation.

Ashwani Bhargava, Director, Supply Chain Management, Boeing India said that significant success has been observed in standards and machining sheet metal as well as other newly produced parts. There are numerous sourcing opportunities available from India, as well as numerous trade opportunities for MSMEs. India is becoming more relevant in the Boeing supply chain because of a leather supply base; there is also a strong emphasis on new technologies and the concept of industry 4.0.

Partha P Roy Chowdhury, Director-Commercial & Industrial Development Lockheed Martin, shared that India is expected to emerge as one of the world’s leading economies. India’s MSME sector is also expected to play a significant role in the Indian economy's emergence. The development of this segment is critical to meeting the national imperatives of financial inclusion and high-level employment generation in both the urban and semi-urban sectors.

Cmde (Retd) Mukesh Bhargava, VP & Board Member L&T defence, asserted that MSMEs are an essential part of the supply chain for OEMs and large industries because they are primarily the creators of niche technologies. Foreign OEMs look to them for design technologies, EMRs, Deep-Tech, and disruptive technologies, as well as industry 4.0 building blocks.

Vikas Balani, AGM, SIDBI, discussed the various schemes that SIDBI offers to MSMEs, particularly in the defence and Aerospace sectors.

The Session was moderated by Vivek Seigell, ASG, PHDCCI and Dr Nasir Jamal, Secretary, PHDCCI. Global OEMs, Indian OEMs, and MSMEs also spoke at the conference, sharing their perspectives and roles in achieving self-reliance in defence manufacturing. Over 200 MSMEs from across the country attended.

Image Source: PHD Chamber of Commerce and Industry