Growth in MSME, emergence as defence manufacturing hub: Good tidings for Pune Inc in 2024

Over the past three years, defence manufacturing in Pune has grown exponentially. A directory of defence manufacturers compiled by MCCIA in CY 2024 showed more than twice the entries (About 650) compared to the one compiled three years ago. While there are some new companies focussed only on defence manufacturing, most others come from the engineering and automobile industries that have repurposed part of their resources to focus on a sector that has seen stupendous growth in the recent past.

In the year ahead, there will be even more production in this sector and a special focus on new technologies like drones and anti-drones. For the first time, Pune will host an Army Day parade in January 2025, and the celebrations will involve an opportunity for Pune-based defence manufacturers to showcase their products.

Pune is making steady progress in electronics manufacturing, with more than 200 companies of various sizes working on electronics design and manufacturing. To support the ecosystem, MCCIA set up the MCCIA Electronics Cluster Foundation, which has started serving more than a hundred companies in CY 2024 (for tests, certification, measurement and EMI/EMC), and it will serve even more numbers in CY 2025 with additional ‘design’ service vertical added in the early part of the next year.

For a district rated number one out of 800+ districts in engineering goods exports, it’s a good development for further strengthening Pune’s positioning in the electronics manufacturing sector.

In the IT/ITES sector, CY 2024 observed a focus on returning to the workplace as opposed to ‘working from anywhere’. There were stories of some companies leaving Hinjewadi, but that was more of a natural annual flux as some companies (a small number of them) left, and some new ones came as against any exodus. The IT/ITES sector continues to contribute to India’s services exports, and recently published numbers show that it is the third highest in the country. CY 2024 also observed an increased level of traction on GCCs (Global Competency Centers), and it will continue to grow in FY 2025.

In manufacturing, Pune continues to be a major hub in the country, with merchandise exports that rank it ‘one of the top 5’ among 800+ districts in the country. The manufacturing sector saw growth in CY 2024, with some ups and downs in the EV sector. The problems of lack of ‘ease of doing business’ require even more attention.

Regarding infrastructure, while there is some progress on the Metro and announcements on the ring road, in CY 2024, the IT/ITES employees still found it challenging to travel to and from Hinjewadi, and manufacturing employees had the same experience travelling to and from Chakan. CY 2025 will likely bring some relief on these counts as well.

Prashant Girbane is director general of the Maratha Chamber of Commerce Industries and Agriculture