Defence Ministry Clears Procurement Worth Over Rs. 2,400 Crore from Startups and MSMEs

• 16 Oct 2026
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On 15 October, at the Times Network National Defence Conclave 2026, Union Defence Minister Shri Rajnath Singh stated that the Ministry of Defence has approved the procurement of over Rs. 2,400 crore from startups and MSMEs. 

He also said that the defence projects worth over Rs. 1,500 crore have been approved to develop new technology. This move reflects the Defence Ministry’s commitment to make the tri-services future war-ready.

Currently, approximately 8,000 to 12,000 MSMEs and more than 600 startups are involved as vendors, suppliers and sub-tier partners for Defence Public Sector Undertakings (DPSUs), ordnance factories and the private-sector defence ecosystem.

Creating a Self-Reliant Defence Ecosystem

The Defence Minister stated India is creating a self-reliant defence ecosystem by reducing reliance on imports and increasing domestic production of advanced defense systems. This initiative not only aims to enhance national security but also contributes to global security.

Highlighting the achievements of the Atmanirbhar initiative, he noted that India has achieved over 90 percent self-reliance in ammunition variants with 159 out of the 175 variants in the Indian Army’s inventory being produced domestically.

He further mentioned that India’s defense sector has undergone significant structural reforms over the past 12 years. As a result, all DPSUs have become profitable and indigenous defense manufacturing has gained significant momentum. 

Increase in Defence Exports

India's progress towards self-reliance is evident in significant increase in defense exports. Currently, India exports defense equipment to nearly 100 countries. In 2013-14, defense exports amounted to Rs. 686 crore, but this figure has surged to over Rs. 38,000 crore in 2025-26, as highlighted by the Minister. 

Singh emphasized the need for the nation to adapt to an era of hybrid, high-tech and hyper warfare where traditional military challenges increasingly overlap with digital and non-conventional threats. 

Source:- The Hindu BusinessLine