Can Udyam Msmes Lead The Defence Export Boom From India?

By Author: ritesh
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India's defense industry is undergoing a significant shift. The "Make in India" campaign and a strong push for independence have led the nation to now seek to establish itself as a major international center for defense exports and manufacture. One question jumps out in this rapidly expanding environment: Can MSMEs (Micro, Small, and Medium Enterprises) registered with Udyam Registration lead India's defense export boom?
Understanding the Defense Export Boom
India's defense exports have grown dramatically in recent years. The Ministry of Defence claims that India exported more than ₹16,000 crore worth of defense equipment in 2023–2024—a tenfold increase over the previous decade. This covers parts for radars, ships, airplanes, and more.

A number of factors contribute for this boom:

Defense manufacturing is supported by government programs.
an emphasis on R&D and indigenization.
improved international collaborations.
an increase in the number of nonprofit participants in the industry.

Large defense companies and PSUs (Public Sector Undertakings) have contributed, but ...
... India's MSMEs registered with Udyam may be the true game-changers.
What Are MSMEs Registered with Udyam?
The foundation of the Indian economy is MSMEs. The Ministry of MSME formally recognizes them after they register on the Udyam portal. This gives them a link to government benefits like priority sector funding, market support, quicker credit, and subsidies.

In the defense industry, MSMEs can apply for defense tenders, join customer lists for major defense production companies, and take part in public procurement by registering with Udyam.
The importance of MSMEs in the Defense Industry
India has a complex and extensive defense infrastructure. It consists of:

major companies such as Tata Advanced Systems, BEL, HAL, and DRDO.

a system of small and medium-sized vendors offering specialized components, services, and new ideas.

Here's why MSMEs are so important:

Innovation and Agility: MSMEs can quickly and more easily adjust to new demands and technology. Drones, surveillance systems, artificial intelligence (AI) safety devices, and even parts for missiles and airplanes are among the innovative goods that many of them are producing.

Cost-Effectiveness: MSMEs are perfect for manufacturing reasonably priced, excellent machinery for export since they frequently have fewer costs for overhead.

Skilled Workforce: India boasts a large reservoir of engineers and technological specialists. MSMEs take advantage of this by forming specialized Research and development (R and product development teams.

Vendor Partnerships: Larger defense corporations frequently purchase from MSMEs. They perform an important role in the profit chain, particularly in sub-assemblies and precision manufacturing.
The government's support for Defense-Related MSMEs
MSMEs are being aggressively encouraged by the Indian government to enter the defense industry:

The Defense Procurement Policy (DPP) supports Indian vendors' involvement in military contracts, particularly for MSMEs.

Offset Policy: A percentage of the contract's value must be invested by foreign defense manufacturers doing business in India in the Indian defense sector, which frequently helps MSMEs.

The Ministry of Defense launched Innovation for Defence Excellence (iDEX) program, which offers capital and incubation to startups and MSMEs developing defence innovations.

The SRIJAN Platform allows MSMEs to place bids on goods that were formerly exclusively produced by defense PSUs but are now available for private production.

The Technology Implementation Fund (TDF) provides funding to startups and MSMEs for the creation and development of defense-related technologies.

Opportunities for Military MSMEs to Export
Many nations in the Middle East, Africa, and Southeast Asia are searching for dependable and reasonably priced defense hardware. MSMEs in India are currently:

exporting drone technology.
supplying military plane spare parts.
establishing surveillance systems for the battlefield.
creating military communication equipment.

Countries unable to purchase expensive Western infrastructure are eager to purchase from Indian businesses who provide high-quality products at competitive prices.
Real-World Examples
ideaForge – This Mumbai-based MSME has built drones for the Indian Army and is now exporting them to countries like Nigeria and Indonesia.

Tonbo Imaging – A startup turned MSME that makes night vision and thermal imaging devices, now exporting to over 20 countries.

Defence MSME Clusters in Tamil Nadu and Telangana – These clusters are producing key components for missiles, torpedoes, and radar systems, both for domestic and international clients.
Barriers That MSMEs Face
Despite the enormous possibility, MSMEs registered with Udyam have certain challenges:
knowledge on export guidelines.
limited access to defense expos and global markets.
high price of keeping to worldwide standards.
Scaling up output is difficult.
However, via industry relationships, efforts to educate, and laws improvements, these issues are being steadily resolved.
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Steps MSMEs Can Take to Tap the Export Market
If you're an MSME registered on the Udyam portal and want to explore defence exports, here’s what you should do:
Get DPIIT recognition to be counted as a defence startup.
Enroll on the SRIJAN portal and iDEX platform for visibility.
Partner with larger players to get access to the export supply chain.
Invest in quality certifications such as ISO and AS9100.
Participate in defence expos and trade fairs like DefExpo and Aero India.
Engage with embassies and export promotion councils like FICCI and EEPC India.
Utilise government schemes like TDF and SMRITI for funding and market access.

In conclusion:
Indian defense exports have an encouraging future, and MSMEs registered with Udyam are well-positioned to spearhead this trend. They are perfect participants in a world that requires defense solutions that are more highly intelligent, quicker, and less expensive because of their agility, technological expertise, and inventive attitude.
These small massive corporations have the ability to make India a major defense exporter on the world platform with the correct direction, capital, and publicity. It is now a mission which must be completed rather than only a fantasy.

Learn more at: https://registrationmsme.com/