Defence Ministry and NSE Team Up to Help Small Businesses Grow
The Ministry of Defence and the National Stock Exchange of India (NSE) have signed a Memorandum of Understanding (MoU) to help small and medium-sized enterprises (MSMEs) in the defence sector access capital markets. The MoU was signed by the Additional Secretary of the Department of Defence Production (DDP) and the Managing Director of NSE, in the presence of Defence Secretary Giridhar Aramane.
The agreement aims to help MSMEs raise productive capital for their growth plans through the NSE Emerge platform, which offers new options for raising equity capital from investors. The MoU will last for five years, during which the DDP and NSE will conduct awareness drives through seminars, MSME camps, knowledge sessions, roadshows, and workshops.
This initiative will help MSMEs and emerging companies in the defence sector scale up their operations, explore new markets, and fund their research and development activities. India’s defence exports have reached a record Rs 21,083 crore (about USD 2.63 billion) in the financial year 2023-24, showing a 32.5% growth over the previous year. The total value of defence production in India also rose by 17% to Rs 1,26,887 crore last fiscal year.
The government has introduced several policy initiatives and reforms to encourage the indigenous design, development, and manufacture of defence equipment, promoting self-reliance in defence manufacturing. Additionally, the government is investing heavily in defence and aerospace manufacturing, with new defence hubs being set up. Many global companies have shown interest in sharing critical defence and aerospace knowledge with India, creating new business opportunities for MSMEs.
Doubts Revealed
Defence Ministry -: The Defence Ministry is a part of the Indian government that takes care of the country’s military and defence matters.
NSE -: NSE stands for National Stock Exchange of India. It’s a place where people can buy and sell shares of companies.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that are not as big as large companies but are very important for the economy.
capital -: Capital means money that businesses need to start or grow their operations.
NSE Emerge platform -: The NSE Emerge platform is a special part of the National Stock Exchange where small businesses can get money from investors.
research and development -: Research and development, often called R&D, is when businesses try to create new products or improve existing ones.
defence exports -: Defence exports are military products and services that India sells to other countries.
Rs 21,083 crore -: Rs 21,083 crore is a way to say a very large amount of money in Indian currency, where 1 crore equals 10 million.