ICC’s Defence MSME Manufacturers Forum (DMMF) – Indian Chamber of Commerce Blogs

Innovating, collaborating, and self-reliance through empowering MSMEs

In the past decade, India’s defence manufacturing ecosystem has grown at an extraordinary pace. In FY 2023-24, defence production in India has reached Rs 1.27 lakh crore from Rs 0.46 lakh crore in FY 2014-15 growing at 12% annually.

This is an extraordinary achievement, the country which was once dependent on foreign suppliers is now emerging as a potential major player in the field of defence manufacturing. India is a rising force in indigenous manufacturing, shaping its military strength through home- grown capabilities.

This acceleration towards self-reliance is made possible by India’s domestic industries, particularly Micro, Small and Medium Enterprises (MSMEs) – whose role is becoming more critical than ever. The recent successful Operation Sindoor highlighted the successful diffusion of defence production into MSMEs.

To prioritise India’s defence manufacturing, Government has undertaken major initiatives that focus on reducing country’s defence imports. The ‘Make in India’ initiative, which aims to achieve 70% indigenisation has been a key focus of the defence sector. The Defence Procurement Procedure (DPP) 2016 introduced new procurement categories such as Buy- Indigenously Designed Developed and Manufactured (IDDM), Make-I and Make-II, to supplement the ‘Make in India’ initiative and inclusion of MSMEs.

Further the Defence Acquisition Procedure (DAP) 2020 made it easier for Indian vendors, especially MSMEs, to participate in defence contracts. iDEX (Innovations for Defence Excellence) launched by the Government promoted innovation and technology development in the defence and aerospace sectors by engaging with MSMEs, start-ups, and individual innovators. It provides financial support, grants, and access to infrastructure for these entities to develop new technologies and contribute to national defence.

The Make in India initiative seeks to integrate MSMEs into the defence supply chain, enhancing the nation’s self-reliance in defence production and fostering growth in the defence export sector. The Defence MSME Manufacturers Forum (DMMF) organised by Indian Chamber of Commerce will focus on facilitating integration of MSMEs from the non- defence sector into India’s expanding defence supply chain.

By offering MSMEs remarkable opportunities, they have demonstrated impressive growth, resulting in the expansion of Government in the horizons of innovation within the defence landscape beyond conventional players thereby, solidifying India’s stance as a global leader within the defence landscape. There will be a session to discuss more on developing a conducive production ecosystem for the MSMEs in the defence sector.

 MSMEs since long have been involved in assisting Defence Public Sector Undertakings (DPSUs) in defence production and manufacturing. However, for sustenance of such engagement by DPSUs to outsource a significant portion of their contract may help in bringing out the growth potential of the MSMEs. The Forum will have session to discuss how MSMEs can be empowered indigenise defence production.

Such and many more topics will come up for discussions in the Summit which will try to address the contemporary issues of MSMEs in defence manufacturing in the Defence MSME Manufacturers Forum (DMMF) organised by the Indian Chamber of Commerce. The forum will highlight the significant role that MSMEs play in the defence sector while showcasing the vast opportunities for growth, collaboration, and innovation.

The Forum also involves the participation of Government of West Bengal through its Department of MSME . The contribution of MSMEs towards the State will be highlighted by Sri Rajesh Pandey, IAS, Principal Secretary, Department of Micro, Small and Medium Enterprises & Textiles, Government of West Bengal during the event.

The forum will also serve as a vital platform for networking and exchange of ideas by facilitating connections between Indian defence companies, foreign OEMs, and other stakeholders.

By providing participants with a unique opportunity to witness the latest technological advancements in Defence, the event will facilitate cost-effective and accessible solutions, driving progress in India’s Defence sector while fostering new partnerships and collaborations. The event will have a dedicated B2B desk to cater to the needs of buyers (DPSU’s and Large Corporates) and sellers (Large companies/ MSMEs).

Another significant highlight of the event is a dedicated B2B desk for facilitating connections between Indian defence companies, foreign OEMs, and other stakeholders.

Come and join us on 14^th June, 2025 at The Lalit Great Eastern Hotel, Kolkata from 10:00 am, onwards.