The value of Indian defense exports for FY22 peaked at Rs 12,815 crore, showing an increase from Rs 8,435 crore in FY21.

Defense orders from MSEs in the current year, as on July 26, stood at Rs 759 crore. (Image credit: pexels)

Defense orders by MSMEs hit a record high for the 2021-22 financial year, according to government data. The purchase of goods and services by MSMEs during the year increased by 33.8% to Rs 5,760 crore in FY21. Compared to pre-Covid, FY22 jumped 79.7% from Rs 3,204 crore. The value of India’s defense exports in FY22 reached Rs 12,815 crore.

Minister of State for Defense Ajay Bhatt said that MSMEs are the important partners in Defense Research and Development Organization (DRDO) projects and in turn DRDO is transferring technology to them while sharing data in Rajya Sabha.

“DRDO through its Technology Development Scheme (TDF) scheme is funding industries, especially start-ups and MSMEs up to an amount of Rs 10 crore for innovation, research and development of defense technology in defense and space,” Bhatt said.

Defense procurement through the Business to Government (B2G) Government eMarketplace (GEM) also registered over 250% growth in FY22. According to the ministry statement, procurement orders through GEM registered an all-time high of Rs 15,047.98 crore in FY22. Similarly, the number of MSME suppliers also increased from 8,643 in FY19 to 10,506 by Q2 of FY20.

“MSMEs started their journey with DPSUs as their supply chain partners, but today they have reached a level where they are playing an important role in offsetting obligations, monetization and also in the design, development and production of complete defense systems of itself,” said Dr Mayank Dwivedi, Director, Industry Interface & Technology Management (DIITM), DRDO at an event organized by the PHD Chamber of Commerce and Industry in March 2022.

The government has also introduced ‘MAKE Projects’ in the Defense Acquisition Program (DAP) 2020 to encourage the design and development of defense equipment with both government and industry funding.

Govt’s Defence Purchases Hit Record High For FY22

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