MSMEs Must Scale, Innovate and Go Global to Power India's Growth: Rajnath Singh

Greater Noida: Defence Minister Rajnath Singh has called on India's micro, small and medium enterprises (MSMEs) to move beyond domestic markets, scale up operations, embrace innovation and establish themselves as globally competitive enterprises.

Addressing the 35th Central Annual General Meeting of the Indian Industries Association (IIA) and the Business Development MSME Awards in Greater Noida on September 1, Singh said MSMEs would play an increasingly important role in India's journey towards Viksit Bharat@2047.

MSMEs Key to India's Economic Growth

Singh said India cannot depend only on large corporate houses to achieve rapid and inclusive economic development. MSMEs, he stressed, must become an equally important pillar of the country's growth strategy.

The Defence Minister highlighted the sector's contribution to employment, manufacturing, exports, skill development and technological advancement.

He said India's vision should be to create an economy that is globally competitive in manufacturing and technology while generating employment opportunities for the country's youth.

From Make in India to Make for the World

Emphasising the importance of global competitiveness, Singh called for a manufacturing strategy based on "Make in India, Make for India and Make for the World."

He urged MSMEs to focus not only on producing quality goods but also on achieving globally competitive quality at affordable costs.

According to Singh, Indian enterprises need to improve productivity, strengthen innovation capabilities and adopt zero-defect manufacturing if they want to compete successfully in international markets.

Technology and Innovation Must Drive Growth

Singh also stressed the importance of technology adoption and research and development for the future of MSMEs.

He encouraged enterprises to invest a portion of their turnover in research, development and technology upgradation and build partnerships with universities, IITs, research institutions, DRDO laboratories, startups and larger industries.

The Defence Minister said such collaborations can help smaller businesses move beyond being suppliers and develop their own intellectual property, products and technologies.

MSMEs and Defence Manufacturing

Singh highlighted the growing participation of MSMEs in India's defence manufacturing ecosystem.

Nearly 16,000 MSMEs are connected with Defence Public Sector Undertakings (DPSUs), underlining the role of smaller businesses in defence production, technology and innovation.

Initiatives such as iDEX and ADITI have also created opportunities for startups and smaller enterprises to contribute to defence, artificial intelligence and advanced technologies.

The Defence Minister said greater participation of MSMEs in strategic sectors would strengthen India's technological capabilities and reduce dependence on imports.

Free Trade Agreements Offer Export Opportunities

Singh also pointed to India's expanding network of Free Trade Agreements (FTAs) as an opportunity for MSMEs seeking to enter international markets.

However, he cautioned that access to foreign markets alone would not guarantee success. Indian companies would need to combine market access with competitive pricing, high quality, innovation and reliable production.

He urged MSMEs to take advantage of government measures, including schemes related to credit support and GST rationalisation, to strengthen their ability to compete globally.

Focus on Scaling Up and Skilling

The Defence Minister identified scaling up, technology adoption, market access and workforce skilling as important priorities for MSMEs.

With artificial intelligence and advanced manufacturing rapidly transforming global industries, Singh said businesses must continuously upgrade their capabilities to remain competitive.

He also highlighted the role of industry associations in connecting MSMEs with government programmes and helping entrepreneurs understand emerging opportunities.

Building Globally Competitive Indian Enterprises

Singh's remarks come as India seeks to strengthen its manufacturing base and increase its presence in global supply chains.

He said MSMEs should aim to develop a global identity based on quality, reliability and innovation, rather than remaining focused exclusively on domestic demand.

The government has increasingly positioned MSMEs as important contributors to India's self-reliance and economic expansion, particularly in manufacturing and strategic sectors.

Road Ahead for India's MSMEs

The push for MSME expansion is expected to remain central to India's broader economic and industrial strategy.

For smaller businesses, expanding internationally will require investment in technology, skilled manpower, intellectual property, quality standards and efficient supply chains.

Singh's message to the sector was clear: MSMEs must evolve from domestic suppliers into globally competitive enterprises if they are to play their full role in India's growth story.

As India works towards the Viksit Bharat@2047 goal, the ability of its millions of MSMEs to innovate, scale and compete internationally is likely to remain a crucial factor in achieving sustained and inclusive economic growth.