MoD, NSE Join Forces To Boost MSME Growth in Defence Sector

New Delhi, Jul 30 (KNN) In a landmark move, the Ministry of Defence (MoD) and the National Stock Exchange of India Limited (NSE) have inked a Memorandum of Understanding (MoU) aimed at empowering Micro, Small and Medium Enterprises (MSMEs) in the defence sector.

The agreement, signed on July 29, 2024, seeks to facilitate easier access to capital markets for these vital players in India's defence ecosystem.

The MoU was formalised in the presence of Defence Secretary Giridhar Aramane, with Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE as signatories.

This five-year partnership is set to boost the way MSMEs in the defence sector raise capital for their growth and expansion plans.

At the heart of this initiative is the NSE Emerge platform, a dedicated segment of the NSE designed to cater to the unique needs of SMEs.

This platform promises to offer new and viable options for raising equity capital from a diverse set of investors, potentially transforming the financial landscape for defence sector MSMEs.

The collaboration between the MoD and NSE goes beyond mere financial facilitation. As part of the agreement, both parties have committed to conducting extensive awareness drives.

These will include seminars, MSME camps, knowledge sessions, road shows, and workshops, all aimed at guiding defence sector corporates through the intricacies of fund-raising on the NSE Emerge platform.

Furthermore, NSE has pledged to assist MSMEs in navigating the complex world of capital markets. This support will include connecting these enterprises with key intermediaries such as merchant bankers, registrar and transfer agents, and depositories.

The stock exchange will also provide guidance on capital market mechanisms, regulatory compliance, and other essential requirements.

This MoU is expected to have far-reaching implications for the defence sector. By enabling MSMEs to scale up their operations, explore new markets, and fund their R&D activities, it could potentially accelerate innovation and growth in this critical industry.

The move aligns with the government's broader push for self-reliance in defence production and could significantly boost the competitiveness of Indian MSMEs on the global stage.

As India continues to modernise its armed forces and reduce dependency on imports, this initiative could prove to be a game-changer.

By providing easier access to capital, it may spur the development of cutting-edge technologies and products within the country, further strengthening India's position in the global defence market.

The coming years will reveal the full impact of this partnership, but early indications suggest a bright future for MSMEs in India's defence sector.

As these enterprises gain access to new sources of capital and expertise, they are poised to play an increasingly crucial role in India's defence preparedness and technological advancement.

(KNN Bureau)