Chennai: The Indian government has significantly strengthened Micro, Small, and Medium Enterprises (MSMEs) by integrating them into the defence manufacturing supply chain and facilitating their entry into export markets, as highlighted by Nirmala Sitharaman, Minister of Finance, on Friday

During an interaction with students in Chennai, Sitharaman delved into various topics, including the economy, defence, MSMEs, employment, and women empowerment.

In the context of defence production and exports, the finance minister emphasised the focus on local manufacturing to fulfil the armed forces' requirements, with MSMEs playing a critical role in the self-reliance program.

These enterprises are now equipped to meet defence quality standards through certifications, a result of policy reforms integrating MSMEs and start-ups into the supply chain.

“There has been almost a 200 per cent increase in the number of defence licences issued to the industries in the last 7-8 years by the government,” as per official information.

Notably, defence production units now engage in long-term contracts (for 10 years) with MSMEs, a departure from past practices, stated Sitharaman.

The surge in defence exports from India presents significant opportunities for MSMEs.

These enterprises, having met stringent quality standards set by the Indian Defence, receive government support to export their products.

Prospective MSME exporters undergo a certification process, enabling them to market their products globally.

In the current fiscal year, defence exports have already surpassed ₹20,000 crore, and Sitharaman anticipates reaching ₹24,000 crore by fiscal year-end (₹6,000 crore in FY23).