Telangana targets Aerospace & Defence leadership by 2030 at MSME Spark 3.0
HYDERABAD: The Federation of Telangana Chambers of Commerce and Industry (FTCCI), in partnership with the Department of Industries & Commerce, Government of Telangana, organised “MSME Spark 3.0 – Aerospace & Defence Manufacturing” on Friday. The event reinforced the region’s standing as a top destination for defence and aerospace manufacturing.
The conclave brought together over 400 policymakers, defence experts, industry leaders, innovators, investors, startups, and MSMEs to discuss new opportunities in India’s aerospace and defence manufacturing sector.
Focusing on Telangana’s leadership, N. Uttam Kumar Reddy, Minister for Irrigation, CAD, Food & Civil Supplies, Government of Telangana, said Telangana is positioning itself as a national leader in aerospace and defence manufacturing. Drawing on his experience as a former Indian Air Force fighter pilot and ADC to the President of India, he expressed confidence that Telangana will become India’s Aerospace and Defence Capital by 2030.
Expanding on this, the Minister said, “The Telangana Government has identified aerospace and defence as priority sectors under our industrial policy.” He described Hyderabad as a cost-effective destination, highlighting its ecosystem of defence labs, research institutions, advanced manufacturing, and a vibrant MSME base. Nearly 1,500 MSMEs in Telangana are in the aerospace and defence supply chain.
He also emphasized the government’s commitment to skill development, highlighting the proposed TG Young University as a key initiative to strengthen India’s defence manufacturing ecosystem.
Shifting to a national perspective, Dr G. Satheesh Reddy, Member, National Security Advisory Board and Former Secretary, DDR&D and Chairman, DRDO, noted that the conclave coincided with the first anniversary of Operation Sindoor, which showcased the strength of India’s homegrown defence systems. He credited Indian industries, especially MSMEs, for their contribution to the operation’s success.
Continuing on defence progress, Dr Satheesh Reddy noted that the Defence Acquisition Council (DAC) recently approved defence proposals worth Rs3.5 lakh crore under the Acceptance of Necessity (AoN) framework, one of the largest military modernisation approvals in India’s history. He added that India has placed defence orders worth nearly Rs2 lakh crore, including about 220 Tejas fighter aircraft valued at over Rs1.19 lakh crore.
He further announced, “The Ministry of Defence aims for exports worth Rs50,000 crore by 2028,” encouraging startups and MSMEs to participate. Nearly 80 percent of the Akash Missile programme’s value came from MSMEs, underscoring their key role in building national defence capabilities.
Adding another viewpoint, Dr. Chandrika Kaushik, Distinguished Scientist & Director General (Production Coordination & Services Interaction), DRDO, called the conference timely, coinciding with the first anniversary of Operation Sindoor. She emphasized the need for a nationwide approach to build operational capability and self-reliance in defence manufacturing.
She shared that India’s defence budget this year is Rs7.85 lakh crore, with a capital outlay of Rs2.19 lakh crore—over 75 percent of which goes to domestic industry.
In addition, she announced that under the new Technology Transfer (ToT) Policy 2025, DRDO offers free renewal, twelve weeks of support, and zero license fees for development partners and production agencies. More than 750 DRDO patents are now available royalty-free to Indian industry.
She also added that DRDO’s Technology Development Fund (TDF) gives up to 90 percent grant-in-aid for project costs or Rs50 crore for MSMEs and startups. She reported that over 18,000 tests have been conducted at DRDO facilities in the past three years, and exports of DRDO technology products have exceeded Rs13,000 crore.
Concluding the event, R. Ravi Kumar, President, FTCCI, said, “MSME Spark 3.0 shows FTCCI’s commitment to strengthening MSMEs by connecting them with new opportunities in aerospace and defence. India’s move toward Atmanirbhar Bharat is creating major opportunities for industry, startups, and innovators. Telangana is well-positioned to lead this change with its strong industrial ecosystem, progressive policies, and skilled talent base.”
The conclave wrapped up with three technical sessions on defence procurement, funding, investment pathways, and entrepreneurial success stories. Speakers from DRDO, BEL, MIDHANI, Bharat Dynamics Limited, SIDBI, KRAS, ICOMM, Raghu Vamsi Group, and XDLINX Space Labs shared their insights.
