Defence procurement from MSMEs up by 79% in FY22

New Delhi, Aug 2 (KNN) The government’s aim to enhance self-reliance in defence production by promoting local defence manufacturing has led to a record high defence procurement from MSMEs in the fiscal year 2021-22.

As per the government data, the procurement in FY 22 marks a jump of 79.7 per cent from Rs 3,204 crore during FY20. The total value of Indian defence exports during FY22 reached Rs 12,815 crore vis-a-vis Rs 8,435 crore in FY21 and Rs 9,116 crore in FY20.

The defence procurement from MSEs in the current year, as of July 26, stands at Rs 759 crore.

Ajay Bhatt, Minister of State for Defence in a written reply in Rajya sabha on Monday said, MSMEs are important partners in the Defence Research and Development Organisation’s (DRDO) projects and DRDO transfers technologies to them.

“DRDO through its scheme Technology Development Scheme (TDF) funds industries, especially startups and MSMEs up to an amount of Rs 10 crore for innovation, research and development of defence technologies in the field of defence and aerospace,” Bhatt said. 

“MSMEs started their journey with DPSUs as their supply chain partners but today, they have come up to a level where they are playing an important role in discharging offset obligations, revenue procurement, and also in designing, developing, and manufacturing complete defence systems by themselves,” said Dr Mayank Dwivedi, Director, Industry Interface & Technology Management (DIITM), DRDO at an event organised by PHD Chamber of Commerce and Industry in March this year. 

Importantly, the government had introduced ‘MAKE Projects’ in Defence Acquisition Procedure (DAP) 2020 to facilitate indigenous design and development of defence equipment both with government funding and industry funding.  (KNN Bureau)