Defence minister Rajnath Singh has called upon Micro, Small and Medium Enterprises (MSMEs) to invest a portion of their turnover in research, development and technology upgradation while fostering partnerships with universities, Indian Institutes of Technology (IIT), research institutions, Defence Research and Development Organisation (DRDO) labs, start-ups, and large industries to evolve from mere domestic suppliers to global enterprises and achieve the goal of Viksit Bharat@2047. Addressing an MSME event in Greater Noida, Uttar Pradesh on 1 September 2026, he asserted that Viksit Bharat signifies a nation that is globally competitive in manufacturing, a leader in technology and innovation, and self-reliant in its strategic and economic capabilities, capable of generating ample employment opportunities for the youth.

Emphasising on strengthening the global competitiveness of Indian MSMEs, the minister stated that the ongoing transformation of global supply chains and the growing demand for reliable manufacturing partners present a significant opportunity for India. He highlighted the steps being taken under the leadership of Prime Minister Narendra Modi to deepen India’s trade partnerships with key nations, including through Free Trade Agreements (FTAs) with the US, UK, New Zealand, Oman, Switzerland and the European Union. “These FTA networks open up a vast ocean of opportunities for global trade and exports for MSMEs and industries. They must fully leverage these international partnerships and trade agreements through government schemes such as credit guarantee expansion and GST rationalisation, and take Indian products to every corner of the globe. Our manufacturing vision must be guided by the principle of ‘Make in India, Make for India, and Make for the World’,” he said.

Singh enumerated the government’s efforts towards integrating MSMEs into the formal economy and creating an enabling ecosystem for their growth, pointing out that the number of MSMEs has increased from around 4.67 crore in 2012-13 to approximately 8 crore today. This reflects the growing depth and dynamism of India’s entrepreneurial ecosystem, he said.

Highlighting the immense potential of MSMEs in defence manufacturing, the minister said initiatives such as Innovations for DeiDEX and Acing Development of Innovative Technologies with iDEX (ADITI) are enabling start-ups, innovators and MSMEs to develop cutting-edge solutions for the defence forces. He urged MSME entrepreneurs to view the sector as a gateway to technology, innovation and global business opportunities. He identified drones, Artificial Intelligence (AI), robotics, cybersecurity, advanced electronics, sensors, autonomous systems, advanced materials, space and quantum technologies as areas offering immense opportunities for Indian MSMEs.

Singh underlined that technology alone cannot drive growth and global competitiveness of MSMEs as equal attention must be given to quality, skill development, technology upgradation, market access and finance. “Indian MSMEs must establish their identity in global markets through quality and reliability. The importance of these attributes is even greater in the defence sector, where the reliability of every component directly affects the operational effectiveness of the defence forces. The defence manufacturing ecosystem must remain committed to the principle of ‘Zero Defect’ and ‘Zero Compromise on Quality’,” he said. He underlined the need to equip the youth with industry-relevant skills and encourage MSMEs to continuously upskill their workforce to meet the demands of modern industry.

He further called for making advanced technologies such as digital manufacturing, automation, AI and modern production methods more accessible and affordable for MSMEs.

Singh also highlighted the special significance of North India’s MSME sector in India’s industrial development, noting its strong presence across manufacturing, engineering, automobiles, electronics, defence, textiles, food processing and services.