The three day event is an MSME sub-contracting and supply exhibition for defence, aerospace and homeland security.
“The expo will provide platform for MSMEs to discover national and international business opportunities of outsourcing, collaborations and tie-ups. MSME DEFEXPO showcases products, technologies, services and network with key decision makers and strengthens customer relations,” said the organisers.
In vice versa, global defence companies will be able to seek cost competitive and technologically advanced sub-contractors and suppliers from the Indian MSME sector via this event.
Talking about the event MSME Minister K H Muniyappa said, “Nation such as India cannot rely on imports and needs to become self-sufficient. Industrial and technological growth in the past decades has indicated that it is possible to achieve this self-reliance in Defense by harnessing the emerging dynamism of the MSMEs.” However he also noted that, the government sector alone cannot fulfill the requirements of defense forces and therefore, the private sector has to come in a big way.
Indian MSMEs are entitled to an offset market worth USD 9 billion, since around 25 per cent of the contracts flow to them. As much as USD 10 billion (estimate) of purchases and sourcing from Indian defence PSUs, ordnance factories and the DRDO is currently done. As per the Ministry of Defence’s (MoD) agenda, it will source 70 per cent of all defence equipment from Indian public, private and MSME companies by 2020.
“The latest version of the offset policy has introduced a multiplier of 1.5 for MSME’s and which I am sure will provide bountiful opportunities for the MSMEs to play their rightful role in building strategic capabilities in the interest of the nation’s defence,” said K H Muniyappa.
The first edition of Defence Production Policy (DPP), released in January 2011, reveals that the MoD has decided to support domestic defence industries including MSMEs. For this, the Ministry will set up a fund, which will be utilized to encourage research and development by Indian MSMEs.