Defence Ministry Approves Rs 2,400 Crore Procurement From Startups, MSMEs: Rajnath Singh

New Delhi, Oct 16 (KNN) The Ministry of Defence has approved procurement worth over Rs 2,400 crore from startups and micro, small and medium enterprises (MSMEs), along with projects exceeding Rs 1,500 crore for developing new technologies, Defence Minister Rajnath Singh said on Thursday.

Speaking at an event, Singh noted that the government had shifted its focus from meeting immediate defence requirements to building a self-reliant and future-ready defence ecosystem through reforms, domestic procurement and greater private-sector participation.

Domestic Industry Gets 75% Of Modernisation Budget

Singh highlighted that 75 per cent of the defence modernisation budget had been earmarked for procurement from Indian industries under the Defence Acquisition Procedure and the ‘Buy Indian-Indigenously Designed, Developed and Manufactured’ category.

Reforms in licensing regulations and ease of doing business had expanded the defence manufacturing base, with more than 500 companies now operating in the sector and hundreds of new industrial licences issued.

The wider ecosystem includes more than 16,000 MSMEs, while around 8,000 to 12,000 or more MSMEs and over 600 startups are engaged as vendors, suppliers and sub-tier partners across defence public sector undertakings (DPSUs), ordnance factories and private-sector companies, he said.

Defence Production Crosses Rs 1.78 Lakh Crore

Singh noted that defence production has increased to a record over Rs 1.78 lakh crore from around Rs 40,000 crore in 2014, while exports rose to approximately Rs 39,000 crore in 2025-26 from Rs 686 crore in 2013-14.

Indian defence products now reach nearly 100 countries. The government aims to increase defence production to Rs 2 lakh crore this year and Rs 3 lakh crore by 2029, while targeting exports of Rs 50,000 crore by 2029.

He attributed the export growth to simplified procedures, including the Defence EXIM Portal, online approvals, the Open General Export License, streamlined quality certification and the Green Channel policy.

iDEX Engages 676 Startups And Innovators

Highlighting the role of innovation in defence manufacturing, Singh said initiatives such as iDEX, iDEX Prime and the ADITI scheme had created opportunities for startups, MSMEs and young innovators.

As of March 2026, iDEX had engaged 676 startups and innovators and facilitated 551 contracts. The defence startup ecosystem has expanded from a few dozen enterprises in 2018 to more than 2,000, working in areas such as drones, artificial intelligence, quantum technology, cybersecurity and robotics.

Over 90% Self-Reliance In Ammunition Variants

India has achieved more than 90 per cent self-reliance in ammunition variants, with 159 of the 175 variants used by the armed forces now produced domestically, the Defence Minister said.

The armed forces have issued five positive indigenisation lists covering 509 items, including equipment, weapon systems and platforms, with a sixth list being prepared. DPSUs have identified 5,012 items for indigenisation, of which 3,255 have been indigenised.

(KNN Bureau)