The Ministry of Defence has laid out a roadmap for India’s small and medium enterprises to evolve into globally competitive manufacturers. Defence Minister Rajnath Singh made this call at an event in Greater Noida, Uttar Pradesh on 1 September 2026, urging MSMEs to invest in research and innovation while building partnerships with academic institutions, research bodies and industry leaders.
What the Minister is Asking for
Singh wants MSMEs to allocate a portion of their business turnover toward research, development and technology upgradation. He emphasized that these businesses should collaborate with universities, IITs, research institutions, DRDO laboratories, start-ups and large industrial firms. The goal is to move beyond being domestic suppliers and become exporters capable of competing globally while contributing to the vision of Viksit Bharat by 2047.
The Minister identified five key areas needed for MSME growth: quality and skill development, technology upgradation, market access and access to finance. He stressed that in defence manufacturing particularly, the principle of “Zero Defect” and “Zero Compromise on Quality” must guide operations.
Singh highlighted several technology sectors where MSMEs can find opportunities: drones, artificial intelligence, robotics, cybersecurity, advanced electronics, sensors, autonomous systems, advanced materials, space technology and quantum technologies. Government schemes like Credit Guarantee Expansion and GST Rationalization were flagged as tools MSMEs should use to expand exports.
He noted that India currently has approximately 8 crore MSMEs, up from 4.67 crore in 2012-13. Free Trade Agreements with the US, UK, New Zealand, Oman, Switzerland and the European Union were cited as creating new export opportunities. Defence sector schemes such as iDEX (Innovations for Defence Excellence) and ADITI are available to support small businesses and start-ups developing defence solutions.
What this means for you
If you run or plan to start a small or medium enterprise, the government is signalling that defence manufacturing and high-technology sectors offer real growth pathways. Access to government research institutions, cheaper technology, and trade agreements with major economies has expanded. You will be expected to maintain quality standards and continuously upgrade your skills and operations. For young people, the Minister is calling for entrepreneurship as a route to job creation rather than job seeking.