MSMEs Strengthen India’s Defence and Energy Supply Chains

As the year comes to a close, industry stakeholders say micro, small and medium enterprises (MSMEs) have continued to play a critical role in strengthening India’s strategic sectors, including defence manufacturing, energy infrastructure and employment generation, despite uneven demand conditions and cost pressures.

Industry experts note that MSMEs increasingly form the backbone of supply chains in sectors that require reliability, compliance and long-term commitment.

“MSMEs operate quietly across complex industrial ecosystems. Their contribution to defence manufacturing and energy-related infrastructure is foundational, even if it often goes unnoticed,” Dr. Grish Mohan Gupta, founder of Global Engineers Limited, said during an interaction.

Gupta said the year had reinforced the importance of integrating MSMEs into long-term industrial planning rather than treating them as short-term suppliers.

“When MSMEs are embedded in strategic planning, capacity creation leads naturally to sustainable employment and industrial resilience,” he said.

Other MSME representatives echoed similar views, stressing that small enterprises have moved beyond transactional roles in recent years.

“Over time, MSMEs have become more deeply integrated into national supply chains, particularly in infrastructure and manufacturing. This shift has improved quality standards and strengthened domestic capability,” said an office-bearer of an MSME industry association.

Industry participants said the year also highlighted the need for policy predictability and institutional support to enable MSMEs to invest confidently in technology, skills and compliance.

“Stable policies and access to long-term financing are essential for MSMEs operating in strategic sectors, where investment cycles are longer and margins are tighter,” said a senior executive at an MSME-focused lending institution.

On the energy front, experts said long-term thinking would be critical as India balances immediate requirements with future security.

“Energy planning has to look beyond short-term cycles. Forward-looking discussions around nuclear options, including thorium-based systems, reflect the importance of institutional continuity in meeting future needs,” Gupta said.

According to industry observers, the year underscored that MSME growth would increasingly depend on integration with long-term national priorities rather than isolated incentives.

“Nation building is rarely dramatic. It happens through sustained work, strong institutions and consistent policy support. MSMEs play a foundational role in that process,” Gupta said.

Looking ahead, industry stakeholders said the coming year would test how effectively policy, finance and industry align to support MSMEs as partners in India’s strategic and industrial roadmap.