Growing Significance of MSMEs in Indian Aerospace Manufacturing

Abstract

Many worldwide aerospace and defence (A&D) corporations target the multi-billion dollar Indian A&D sector. Over the last few years, policy changes have rejuvenated the Indian defence sector and the government has been able to fill military vital asset gaps by accelerating essential programmes. However, self-reliance and reduced dependence on imports needs more attention. Government’s ‘Make in India’ initiative showcases its dedication to fostering the growth of domestic defence manufacturing through slew of policies aimed at reducing entry barriers and facilitating collaborations. Given this background and to take advantage of burgeoning opportunities, Indian Micro, Small and Medium Enterprises (MSMEs) must play a significant role in integrating with the supply chains of national and international defence majors. This paper examines the strategies MSMEs might employ to establish a viable defence business given that they are key drivers of long term sustainable goals.