Integrate MSMEs and Startups into Defence Supply Chain says Secretary, MoD at CII Aero Def Tech Summit

Bengaluru, 01^st August 2024: “India, one of the fastest growing economies in the world is progressively positioning itself as a hub for defence, innovation, manufacturing, and maintenance in Asia. Under the AtmaNirbhar Bharat scheme, the government has prioritized indigenous manufacturing infrastructure complemented by robust R&D. Indian and foreign OEMs have shown interest in contributing to our manufacturing capabilities. Also, policy reforms aimed at enhancing ease of doing business, have integrated MSMEs and startups into the defence supply chain,” said   Giridhar Aramane, IAS, Secretary, Ministry of Defence, Government of India during his Inaugural address at the CII Aero Def Tech Summit 2024, organised by the Confederation of Indian Industry (CII) today, in Bengaluru.

“Over 650 industrial licenses have been issued to 413 companies operating in the sector. Even the number of defence products requiring industrial licenses have been deregulated and do not require industrial license. Initial validity of industrial license has also been increased from 3 years to 15 years as announced in the Union budget. With 25% of Defence R&D budget earmarked to set up defence R&D for startups industry and academia, startups have seen significant orders totalling Rs 2400 crore. The two defence corridors in UP and Tamil Nadu have attracted investments exceeding Rs 40,000 crore, and out of which Rs 8,125 crore has been realized already,” he pointed out.

“Startups have begun to develop new technologies, which the public sector was initially hesitant to embrace. This kind of collaboration has sparked new ideas in the industry, showing that no segment is unattainable. Even in fields like space, which was previously considered off-limits, there are now opportunities for us to explore. There is vast potential for indigenous companies to conduct research, create products, and offer solutions in the space sector,” said Mr Manoj Jain, Chairman & Managing Director, Bharat Electronics Limited.

“When we talk about innovation and new trends, one thing that comes to mind is how the aerospace industry started incorporating technology, both globally and in India. India, as the fastest-growing economy, has the potential to lead the world in developing new and innovative products,” quoted Mr Deepak N G, Managing Director, Dassault Systemes India.

“The vision of Viksit Bharat reflects a change in confidence and sentiment. This growth is essential for maintaining national security and achieving self-reliance. Investing in indigenous programs, R&D, and technology is crucial to make this vision a reality. There is potential for public-private partnerships from the design stage to delivery. This collaboration can lead to significant advancements by 2047,” said Mr C B Ananthakrishnan, Director (Finance) & CFO and CMD (Additional In-charge), Hindustan Aeronautics Limited.

“This event is a vital platform for all of us to collaborate and innovate, propelling our aerospace and defence sector to new heights. It is a clarion call for action, innovation, and collaboration,” highlighted Dr D K Sunil, Summit Chairman & Director – Engineering, R&D, Hindustan Aeronautics Limited.

“The current conditions are highly favourable for the growth of the Defence and Aerospace industry. The policy frameworks have facilitated growth in the indigenous defence and aerospace sectors, leading to a 17% increase in domestic defence production this year. If we can sustain this level of growth, India’s defence production could reach approximately 3 trillion rupees by the end of the decade,” mentioned Mr Arun Ramchandani, Chairman, CII National Committee on Aerospace and Defence & EVP & Head – Precision Engineering and Systems, Larsen & Toubro Limited in his keynote address.

“We must bring together all our efforts and support innovation in MSMEs. I believe that with all the steps the government is committed to taking, we will see significant growth in the industry. Bangalore, in this hub of innovation, a hub for the defence and aerospace industry,” he further added.

“The Aerospace and Defence sector is one of the most vibrant and fast-growing spaces in the country today. Two game-changing policy decisions were earmarking 75 per cent of the capital acquisition budget for domestic industry and banning imports of items on the positive indigenisation lists,” said Mr N Venu, Chairman, CII Karnataka and Managing Director, Hitachi Energy India Limited.

“In 2008-2009, we were struggling at around Rs 100 crores. In 2023-2024, our revenue has touched Rs 21,000 crores, with 60 to 65% stemming from India’s defence industry,” said, Mr Rajinder Singh Bhatia, President, SIDM & Chairman – Defence Business, Kalyani Group.

The other sessions included a panel discussion on “The Big Picture: Way Ahead for Aerospace & Defence Sector”; Session on Emerging Technologies in Aerospace & Defence Sector; Session on Atmanirbharta – Policy, Indigenization in Defence; Production & Innovation Ecosystem; Session on Cybersecurity in Aerospace and Defence Sector; Session on Redefining the Final Frontier: Enhancing Space Capabilities