Kolkata 16th June, 2025: The Indian Chamber of Commerce (ICC) convened the Defence MSME Manufacturers Forum on Saturday to accelerate the integration of Micro, Small, and Medium Enterprises (MSMEs) from non-defence sectors into India’s expanding defence supply chain. Aligned with the Government of India’s Make in India initiative, the forum focused on advancing self-reliance in defence manufacturing, expanding defence exports, and unlocking new growth opportunities for MSMEs.
The event featured distinguished speakers including Mr. Rajesh Pandey, Principal Secretary, Department of Micro, Small and Medium Enterprises (MSME) & Textiles, Government of West Bengal; Former Air Chief Marshal Arup Raha; PR Hari, IN (Retd.), Chairman, National Expert Committee on Defence, Aerospace & Space; and Dr. Rajeev Singh, Director General, Indian Chamber of Commerce.
Mr. Rajesh Pandey, in his address, highlighted West Bengal’s strong industrial foundation, stating that the state is home to nearly 90 lakh MSMEs—the second highest in India—employing over 1.35 crore people. Citing the latest National Statistics Organisation survey, he said, “West Bengal leads in the proportion of manufacturing units and women-led enterprises, underscoring the state’s inclusive industrial growth. According to RBI data, the financial expansion of the sector, with credit disbursals rising from ₹13,000 crore in 2011 to ₹1.87 lakh crore in the last fiscal year, marking a 13-fold increase. Further, the state’s industrial infrastructure, comprising nearly 200 parks spanning sectors like leather, hosiery, rubber, and textiles are supported by progressive policies such as the Textile Incentive Scheme, the SAIP Scheme for private industrial parks, and a digital single-window clearance system offering over 140 services online.”
Highlighting the strategic significance of the Eastern Command, the largest operational command in India, Mr. Pandey also said, “ West Bengal’s intent is to deepen collaboration with defence players and associations to create a dynamic vendor ecosystem. The state is keen to support land requirements, facilitate industrial partnerships, and even develop a dedicated Defence Industrial Park, positioning West Bengal as a vital contributor to India’s journey toward defence self-reliance.”
Former Air Chief Marshal Arup Raha, addressing the forum, noted the growing role of MSMEs, DRDO laboratories, and DPSUs in advancing India’s strategic capabilities. He credited these efforts for milestones such as the BrahMos missile, advanced air defence systems, and NAVIC, India’s indigenous satellite-based navigation network. He also said, “ India has transformation from holding just 3% of global GDP at independence to becoming a leader in IT, space, nuclear science, and cyber defence, with landmark programmes like Chandrayaan and Gaganyaan, along with strides in hypersonic glide vehicles, missile defence, ISR technologies, and AI-based warfare systems.” He lauded public sector undertakings such as Bharat Electronics Limited for building a network-centric warfare infrastructure and achieving near-complete airspace coverage through integrated terrestrial, airborne, and satellite-based radar systems. He also highlighted in the development of indigenous jet engines, where India remains reliant on foreign propulsion systems. Stressing the need to shift from dependency to technological leadership, he called for greater attention to regions like eastern and northeastern India, which remain underrepresented in defence industrial development. He said, “State governments, especially in West Bengal, must proactively collaborate with the Centre to establish a dedicated defence manufacturing corridor in the East. Such an initiative, would empower local MSMEs, drive employment, spur technological progress, and strengthen national self-reliance.”
PR Hari, IN (Retd.), Chairman of the National Expert Committee on Defence, Aerospace & Space, underscored the complexity of defence manufacturing and the critical role of MSMEs as a foundational pillar of the ecosystem. Citing global trends, he stated that MSMEs contribute 45% to employment and 75% to GDP in developing countries, with 99% of businesses in Europe and 98.5% in China classified as MSMEs. In India, over 6.5 crore MSMEs contribute 30% to the GDP and generate 65% of employment. Within the defence sector alone, more than 16,000 MSMEs are actively engaged, working alongside 430 defence manufacturing companies and 16 DPSUs. He highlighted the significant growth in domestic defence production, which rose from ₹46,000 crore a decade ago to ₹1.27 lakh crore in FY20, with exports reaching ₹23,000 crore. Of the ₹2.09 lakh crore in contracts signed that year, ₹1.68 lakh crore—81%—were awarded to Indian companies, with 21% of procurement sourced from the private sector and MSMEs. Mr. Hari expressed confidence in the government’s target of scaling defence production to ₹3 lakh crore by 2050, emphasizing that with supportive policies and sustained industry engagement, this vision is not only realistic but inevitable.
Dr. Rajeev Singh, Director General of ICC, reiterated the importance of MSME empowerment in India’s defence manufacturing journey. He stated that as the Make in India initiative continues to reshape the country’s industrial landscape, MSMEs are at the forefront of driving innovation, facilitating strategic collaboration, and reinforcing national self-reliance. He emphasized that MSMEs should not be viewed as peripheral contributors but as central players in the creation of indigenous defence capabilities. Commending the insights shared by experienced industry leaders, Dr. Singh affirmed the ICC’s commitment to translating vision into execution and intent into long-term, sustainable outcomes.