MSMEs Key To India’s Economic Growth, Self-Reliance; Nearly 16,000 Linked With Defence PSUs: Rajnath Singh

New Delhi, Sept 2 (KNN) Defence Minister Rajnath Singh said that MSMEs will be key to India’s economic growth and self-reliance, stressing that development cannot rely solely on large corporations. 

Addressing the Indian Industries Association’s (IIA) 35th annual general meeting in Greater Noida, he said nearly 16,000 MSMEs are linked with defence PSUs, highlighting their growing role in defence manufacturing and innovation, reported Economic Times.

He said the government aims to build a globally competitive India in technology, manufacturing and innovation, while creating jobs and strengthening strategic self-reliance.

MSMEs Seen As Key To Economic Growth And Self-Reliance

Singh stressed that MSMEs are vital for inclusive growth and reducing dependence on large corporations, highlighting initiatives such as iDEX and ADITI that enable startups and smaller firms to participate in defence, AI and advanced technologies.

He urged MSMEs to expand globally by focusing on quality, reliability and innovation, while adopting zero-defect manufacturing, improving productivity, technology adoption and cost competitiveness. 

He also highlighted the growing focus on intellectual property creation, with MSMEs increasingly moving beyond product manufacturing to develop IP.

FTAs Open Export Opportunities

Singh said India’s growing network of FTAs can help MSMEs access global markets, but warned that market access alone will not ensure competitiveness. He urged enterprises to focus on quality, lower costs and greater innovation to boost exports.

He also encouraged MSMEs to leverage government measures, including expanded credit guarantees and GST rationalisation, to strengthen competitiveness and expand internationally.

Focus On Technology And Skills

Singh urged MSMEs to focus on scaling up, technology adoption, market access and workforce skills as AI and advanced manufacturing reshape global industries. 

He said technology and innovation can boost productivity and competitiveness, while access to larger domestic and global markets will support sustainable growth.

He also highlighted the role of industry associations in connecting MSMEs with government programmes and helping them identify and leverage emerging opportunities.

DPSU Exports Surge In FY26

According to the Defence Ministry, DPSUs recorded a 151.2 per cent increase in exports in FY26, while their combined turnover rose 15.4 per cent to Rs 1.29 lakh crore.

Their combined profit after tax increased 15.6 per cent to Rs 23,136 crore during the year.

IIA Reaffirms Support For MSME Sector

IIA National President Dinesh Goyal welcomed the participating entrepreneurs and reaffirmed the association’s commitment to supporting MSME interests.

Greater Noida Chapter Chairman Sarbjit Singh emphasised the importance of member participation in strengthening the association and raising MSME concerns.

(KNN Bureau)