Defence Ministry and NSE Sign MoU to Empower MSMEs in Capital Market Access

The Defence Ministry and National Stock Exchange (NSE) signed an MoU to facilitate MSMEs in the defence sector with capital market access. The five-year MoU will employ NSE Emerge platform and include extensive awareness drives through various events. This initiative follows significant growth in India's defence sector.

The Defence Ministry and National Stock Exchange of India (NSE) have formalized an agreement to open capital market access to micro, small, and medium enterprises (MSMEs) within the defence sector. The Memorandum of Understanding (MoU) was signed by an Additional Secretary from the Department of Defence Production and the Managing Director of NSE, in the presence of Defence Secretary Giridhar Aramane.

This MoU aims to streamline the process for MSMEs to secure capital more efficiently and transparently through the NSE Emerge platform. It also outlines a five-year plan for extensive awareness drives. These will take shape in seminars, MSME camps, knowledge sessions, roadshows, and workshops designed to guide corporate entities working with the Ministry of Defence in their fundraising efforts.

The agreement promises substantial benefits for MSMEs and emerging companies in the defence sector, enabling them to expand operations, discover new markets, and fund research and development. Amidst this, India's defence exports hit a record Rs 21,083 crore in FY 2023-24, showing a 32.5% growth from the previous fiscal year. Additionally, total defence production in India surged 17% to Rs 1,26,887 crore last year.

The government has introduced numerous policies to drive indigenous defence production, enhancing self-reliance in manufacturing. Significant investments are being funneled into defence and aerospace sectors with the establishment of new hubs. Public sector undertakings in defence have seen high returns on equity from fresh orders.

Remarkably, numerous global companies have either shared or shown intent to share critical defence and aerospace knowledge with India, thus opening new business avenues for MSMEs.

(With inputs from agencies.)