Startups, MSMEs to Power India’s Defence Dreams: Rajnath Singh Urges Industry to Take the Lead

India’s defence landscape is quietly undergoing one of its biggest transformations ever — one that’s no longer just about soldiers and strategies, but about startups, innovators, and small businesses. In a call that resonated across India’s entrepreneurial ecosystem, Defence Minister Rajnath Singh has urged startups and MSMEs to become the backbone of India’s self-reliant defence manufacturing journey.

At the Society of Indian Defence Manufacturers (SIDM) Annual Session, themed “Defence Self-Reliance: Strengthening National Security through Indigenous Industry,” Singh underscored how the Aatmanirbhar Bharat mission has turned a vision into verifiable progress.

Before 2014, India’s defence shelves were largely filled with imported technologies. But in just a decade, that story has taken a historic turn. “Our defence production has grown from ₹46,000 crore in 2014 to ₹1.51 lakh crore today, with ₹33,000 crore coming from the private sector. Defence exports, which were under ₹1,000 crore ten years ago, have now reached nearly ₹24,000 crore,” Singh said, exuding optimism that the figure could touch ₹30,000 crore by March 2026.

The numbers tell a story of resilience — but also of opportunity.

A New Era of Defence Self-Reliance

The government’s focus on indigenisation isn’t limited to big public sector undertakings anymore. It’s startups, MSMEs, and private innovators who are increasingly defining India’s new-age defence capabilities.

Rajnath Singh’s announcement of the Defence Procurement Manual 2025 and the revision of the Defence Acquisition Procedure 2020 marks a pivotal shift toward simplifying private participation and encouraging domestic procurement. The idea is clear — India’s defence industry must be not only self-reliant but also globally competitive.

And the proof of this transformation is visible on the battlefield too. Singh cited Operation Sindoor, a mission that showcased the power of India’s homegrown defence technologies — from Akash missiles to BrahMos and the AkashTeer Air Defence Control System.

“The operation’s success not only demonstrated the strength of our Armed Forces but also highlighted the contributions of our ‘industry warriors’ — the innovators, designers, and manufacturers working behind the scenes,” Singh said.

In his words, India’s industrial innovators have become the “fourth pillar of national defence”, standing tall beside the Army, Navy, and Air Force.

Startups and MSMEs: The New Vanguard

The Defence Minister’s address placed a strong emphasis on the role of innovation and R&D. He urged startups and MSMEs to move beyond prototypes and pilot projects, and focus on building end-to-end, scalable, world-class technologies.

To accelerate this, the government is expanding platforms like iDEX (Innovations for Defence Excellence) and ADITI (Aatmanirbhar Defence Initiative for Technological Innovation) — initiatives designed to connect young innovators directly with real-world problem statements from the armed forces.

“No nation can progress without innovation. Through iDEX and ADITI, we are empowering our young entrepreneurs to create world-class defence solutions,” Singh said. “Together, we can completely transform the defence manufacturing landscape.”

The larger mission goes beyond defence — it’s about embedding a culture of research-led growth across industries. Singh referenced flagship initiatives like the Quantum Mission, Atal Innovation Mission, and the National Research Foundation, each of which aims to make innovation a mainstream economic driver rather than a niche pursuit.

Building the Indigenous Supply Chain

Singh also called for a stronger domestic supply chain that doesn’t just focus on building finished products but strengthens every link — from subsystems and components to maintenance and servicing ecosystems.

Currently, India’s private sector contributes roughly 25% to the overall defence manufacturing value. Singh has set an ambitious target — to double that to 50% within the next three years.

“Our goal should not be just to assemble in India but to build and innovate in India. ‘Our Soil, Our Shield’ must be our guiding principle,” he said.

The message was loud and clear: India’s security cannot rely on foreign blueprints. Its next-generation defence strength must be born on Indian soil, designed by Indian minds, and powered by Indian enterprises.

The Road Ahead: From Vision to Vanguard

With policy reforms, procurement ease, and incentives for innovation, the Indian government is laying down a strong foundation for defence startups and MSMEs to thrive. What was once a domain dominated by global giants is now being opened up to Indian creators who can dream, design, and deploy homegrown solutions.

From cutting-edge drone systems to AI-powered surveillance tools, from indigenous missile systems to advanced defence electronics — India’s startup ecosystem is stepping into spaces once thought unreachable.

Rajnath Singh’s address was not just a policy pitch; it was a call to action — a reminder that the next chapter in India’s defence story will be written not just by soldiers on the frontlines, but by innovators in labs, workshops, and incubators across the country.

As India aims to emerge as a global leader in defence technology, one thing is becoming clear: the nation’s march toward self-reliance will be powered by its startups and small enterprises — the true “industry warriors” of modern Bharat.