Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

MSMEs failing to make it big in the defence sector

- Advertisement -

January 15, 2015: In spite of a hike in FDI to 49 per cent in the defence sector and the ‘Make in India’ giving its own boost to the sector, micro, small and medium enterprises (MSMEs) are facing its own challenges to make their mark in defence. The defence tender parameters have been the biggest blockage in their way as most of them don’t come with an ability to meet them. Besides, the Defence Acquisition Council (DAC) is in the practice of handling only high value capital acquisitions, which again act as a big hindrance for the MSMEs. Adding on to these, G. Raj Narayan, founder and managing director of defence MSME firm Radel Advanced Technology, told IANS that the MSMEs also lack high standards of quality, reliability, repeatability and traceability, which form as the key characteristics of the defence sector.

Besides all this, MSMEs don’t have the requisite amount of knowledge in highly specialised materials and components used in the sector. Mounting the pressure on the same is also the stringent certification process that dampens the spirit of the MSMEs even further. Giving comments on this particular challenge, Puneet Kaura, the executive director of Samtel Avionics Ltd, a defence manufacturing company said, “As a policy, MSMEs are allowed to participate in defence ministry tenders right from the Request for Information (RFI) stage. However, most of the RFI and Request for Proposal dealt with at the ministry and DAC require technical competencies that a single MSME may not have. This is one of the main reasons which prevents MSMEs from participating in DAC tenders.”

Size, capacity, reach and the level of practicability and implementation are the departments where the smaller companies have been lagging behind the bigger players. “There do exist some systems that MSMEs can bid – for example in Electronic Warfare Systems or Optronics Systems, that are under the ‘Make in India’ programme. We can partner with a Prime (foreign player or DPSU or enterprise level defence company) and then bid for the same as an MSME,” Kaura said.

- Advertisement -

Even though the ‘Make in India’ campaign gives a ray of hope to the small and medium defence companies to make full use of an opportunity to be a part of fat money deals, the MSMEs are still skeptical as most of the electronic components used are imported. So important people from the industry are voicing a common opinion of the importance of these components being manufactured in India. Only then there will be a wholeness.

The MSME task force has already listed 14 issues that have been pinching the MSME sector the most, but the major concerns that remain unaddressed are the availability of finance and technology. The task force further stated that the MSME sector contributes eight per cent of the country’s GDP at present, 40 per cent of the manufactured output, 40 percent of its exports and employing about 60 million people through a total of 26 million enterprises.

- Advertisement -

Most Popular Articles

Ola electric

Ola To Launch Its First Electric Three Wheeler ‘Raahi’ By Early 2025

0
This strategic move aims to diversify Ola's offerings beyond electric scooters and tap into the growing demand for electric three-wheelers in India. Ola Electric Ltd,...

Is India Becoming A Key R&D Hub For Apple Products?

0
Betting big on India, Apple is launching a new R&D hub to drive product design, testing, and tech innovation, tapping into the country's growing...
Vedanta Display Glass Investment

Vedanta Group To Boost Display Glass Manufacturing With $500Mn Investment

0
Vedanta’s investment in its subsidiary, AvanStrate Inc research and development, manufacturing capabilities, and product offerings to meet the increasing global demand. India's global mining firm...
Tata

Singapore Chosen As Tata’s Partner For Semiconductor Projects

0
As ties between the two countries strengthen across sectors, Tata Sons chooses Singapore as a key partner for semiconductor ventures, with major investments planned...

Trump’s Tariffs Could Double Apple’s India iPhone Production

0
On Trump's proposal of heavy tariffs on China, Apple’s iPhone production in India could soar to $30 billion annually, creating 200,000 jobs and boosting...

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Dr Yashodhan P. Gokhale, Vice President for Battery Technology, JSW Energy

Charge Forward: High-Voltage Batteries And MSMEs Can Fuel India’s EV Revolution

0
A nuanced explanation of low- and high-voltage EV batteries by Dr Gokhale, Vice President for Battery Technology at JSW Energy, illuminates their advancements and...
Sanjay Gupta, CDO & Global Head of Engineering, L&T Semiconductor Technologies

Can MSMEs Contribute And Profit From The Semicon Boom?

0
Semiconductor manufacturing often requires significant investment, typically feasible only for governments or large corporations. But are there opportunities for MSMEs as well? We spoke...
N.P. Ramesh, COO and Co-Founder, Orb Energy

“We Ensured Customers’ Monthly EMI Would Be Equal To Or Less Than Their Electricity...

0
In a conversation with Nitisha from EFY, N.P. Ramesh of Orb Energy outlines the early financing challenges customers faced. He explains how Orb Energy’s...

“Government Policy Should Equitably Address All Electric Vehicles: Extend Subsidies To Retrofits Or Remove...

0
Aryaman Raghuvanshi from EFY engages with Pramod Narendra, Head of Brand Management and Retail Network at Starya Mobility, to explore the overlooked potential of...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Karnataka Government Initiative Promises ₹5M To Tech Startups

0
Boosting innovation and entrepreneurship across the state’s vibrant ecosystem, Karnataka launched Elevate 2024 and KAN, offering grants up to ₹5 million for startups. On Tuesday,...

CastNX Tech Startup Secures ₹232M For Power Electronics Growth

0
Eyeing to boost R&D and produce 100,000 variable frequency drives by 2026, Indian power electronics startup CastNX has secured ₹232.2 million from Plutus Investments. CastNX...

Industry's Buzz

Ola electric

Ola To Launch Its First Electric Three Wheeler ‘Raahi’ By Early 2025

0
This strategic move aims to diversify Ola's offerings beyond electric scooters and tap into the growing demand for electric three-wheelers in India. Ola Electric Ltd,...

Is India Becoming A Key R&D Hub For Apple Products?

0
Betting big on India, Apple is launching a new R&D hub to drive product design, testing, and tech innovation, tapping into the country's growing...
Vedanta Display Glass Investment

Vedanta Group To Boost Display Glass Manufacturing With $500Mn Investment

0
Vedanta’s investment in its subsidiary, AvanStrate Inc research and development, manufacturing capabilities, and product offerings to meet the increasing global demand. India's global mining firm...
Tata

Singapore Chosen As Tata’s Partner For Semiconductor Projects

0
As ties between the two countries strengthen across sectors, Tata Sons chooses Singapore as a key partner for semiconductor ventures, with major investments planned...

Trump’s Tariffs Could Double Apple’s India iPhone Production

0
On Trump's proposal of heavy tariffs on China, Apple’s iPhone production in India could soar to $30 billion annually, creating 200,000 jobs and boosting...

Learn From Leaders

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Dr Yashodhan P. Gokhale, Vice President for Battery Technology, JSW Energy

Charge Forward: High-Voltage Batteries And MSMEs Can Fuel India’s EV Revolution

0
A nuanced explanation of low- and high-voltage EV batteries by Dr Gokhale, Vice President for Battery Technology at JSW Energy, illuminates their advancements and...
Sanjay Gupta, CDO & Global Head of Engineering, L&T Semiconductor Technologies

Can MSMEs Contribute And Profit From The Semicon Boom?

0
Semiconductor manufacturing often requires significant investment, typically feasible only for governments or large corporations. But are there opportunities for MSMEs as well? We spoke...
N.P. Ramesh, COO and Co-Founder, Orb Energy

“We Ensured Customers’ Monthly EMI Would Be Equal To Or Less Than Their Electricity...

0
In a conversation with Nitisha from EFY, N.P. Ramesh of Orb Energy outlines the early financing challenges customers faced. He explains how Orb Energy’s...

“Government Policy Should Equitably Address All Electric Vehicles: Extend Subsidies To Retrofits Or Remove...

0
Aryaman Raghuvanshi from EFY engages with Pramod Narendra, Head of Brand Management and Retail Network at Starya Mobility, to explore the overlooked potential of...

Startups

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Karnataka Government Initiative Promises ₹5M To Tech Startups

0
Boosting innovation and entrepreneurship across the state’s vibrant ecosystem, Karnataka launched Elevate 2024 and KAN, offering grants up to ₹5 million for startups. On Tuesday,...

CastNX Tech Startup Secures ₹232M For Power Electronics Growth

0
Eyeing to boost R&D and produce 100,000 variable frequency drives by 2026, Indian power electronics startup CastNX has secured ₹232.2 million from Plutus Investments. CastNX...