Experts urge MSMEs to invest in R&D for defence contracts

l Experts ask MSMEs to contribute in areas like maintenance, supplies, and innovation

l The conclave showcases govt initiatives, support programs for MSMEs in defence sector

l AP’s strategic location highlighted as opportunities for MSMEs in maritime security, shipbuilding

Visakhapatnam: The opportunities for the MSME sector in the rapidly developing defence industry sector came up for threadbare discussion at a daylong regional MSME conclave organised by the Society of Indian Defence Manufacturers (SIDM) in collaboration with the Department of Defence Production, Ministry of Defence and Confederation of Indian Industry (CII) here on Tuesday.

Speakers included Vice-Admiral G Srinivasan, Director General, Naval Projects (DGNP), Indian Navy, J Srinivas Raju, Chairman, SIDM, AP chapter and CMD, Geomarine Dynamics (I) Pvt. Ltd, K Ramesh, Director General, SIDM. Secretary, Commerce and Industries, Andhra Pradesh Government N Yuvaraj, spoke in a virtual mode highlighting the strategic significance of AP in maritime security and its potential to support regional MSMEs in defence production.

Yuvaraj announced the government's commitment to provide land at nominal rates for the establishment of an MSME park, which will serve as a regional base and facilitate sector-specific identification for MSMEs.

The DGNP in his address commended the conclave's theme and emphasised the Indian Navy's commitment to self-reliance, with a significant portion of naval ships being indigenised. He stressed the importance of MSMEs in fulfilling specific objectives outlined by the Navy, including delivery of ordinance, maintenance, sustenance, and competence.

The experts called for investments in research and development (R&D) to create Intellectual Property Rights (IPR) for products and equipment, thereby gaining operational advantages. The responsibility for R&D has traditionally rested with institutions like DRDO; however, as the sector opens up for wider private participation, industries were urged to invest in creating their own IPR and fostering innovation.

Various sessions at the conclave acted as a guiding light for MSMEs and startups, illuminating the extensive government support available in the defence sector. It explored a range of policies designed to create a conducive environment for smaller enterprises. Covering aspects from financial incentives to streamlined regulations, the discussion outlined how these initiatives aim to strengthen the involvement of MSMEs and startups in defence activities.

The conclave was of the opinion that the growth of the Indian defence industry is largely dependent upon the engagement of MSME, which forms the backbone of any sector in the country. Numerous MSMEs across various sectors are already engaged as tiered partners with the government bodies and large private sector Original Equipment Manufacturers (OEMs) as their supply chain partners. This engagement needs to be continuously enhanced for ‘Make in India’ and indigenisation initiatives supported by a streak of continuous policy reforms aiming to facilitate the MSME into the defence supply chains.