Defence production within India is experiencing a tremendous change to accomplish self-reliance in defence technology. India has the potential to emerge as a global platform for defence research, manufacturing, supply chain sourcing, software development, and offsets, which will strengthen our defence capabilities and spur industrial development in this sector. Make in India and Atmanirbhar Bharat are the program aimed in providing direction and momentum to the country’s objective to become self-reliant. MoD in 2018 initiated Innovation for Defence Excellence (iDEX) wherein, the Government recognised the requirement to enhance innovation and technology by engaging the private sector, big players, start-ups, individual innovators or academia. Government is now promoting Micro Small and Medium Enterprises (MSMEs) and constantly amending policies on indigenisation. Reforms in Govt policies are now encouraging MSMEs and amendments to Defence Procurement Policy (DPP) is a progressive step in this direction. In spite of the policies, India is still depending on foreign countries for defence goods. This may necessitate a relook on the procurement policies in vogue. There is a need to answer primary question –Are there any gap in the extant polices for achieving National Objective of self-reliance in Defence? There may be gaps between what is promised and what comes on the plate. These gaps need to be bridged for an effective and responsive ecosystem for iDEX, Make in India Projects etc. in Defence Sector. IAF is supporting Atmanirbhar Bharat and more than 8000 Micro Small and Medium Enterprises (MSMEs) in Defence sectors are trying to survive by piggy banking on bigger players, wherever possible. The objective of the study is to formulate methodology to encourage MSMEs and enhance the areas in indigenisation.