A ship's bow dressed for launch inside a building shed at Visakhapatnam.

Guide 09 The Indian defence industry

What does the defence and aerospace ecosystem in Hyderabad and Visakhapatnam look like?

Neither Telangana nor Andhra Pradesh sits inside a nationally notified Defence Industrial Corridor, but both host real defence manufacturing and quality assurance infrastructure. Hyderabad has Bharat Dynamics, MIDHANI and the naval quality establishment CQAE(N); Visakhapatnam has Naval Dockyard Visakhapatnam and the shipyard Hindustan Shipyard Limited.

Topic
The Indian defence industry
Checked
23 September 2026
Sources
5
Questions
5

01

Hyderabad: missiles, alloys and naval quality assurance

Hyderabad hosts Bharat Dynamics Limited, a DPSU that makes missiles, and MIDHANI, the Mishra Dhatu Nigam, which makes special alloys for aerospace and defence use, alongside CQAE(N), the Chief Quality Assurance Establishment (Naval), a field unit of DQA(N) based in the DGQA Complex at Manovikas Nagar, Secunderabad. That combination of two DPSU buyers and a naval quality assurance office in one city is what a local supplier actually deals with day to day, not an abstract policy designation.

02

Visakhapatnam: the dockyard and the shipyard

Visakhapatnam is home to Naval Dockyard Visakhapatnam, which publishes its own written vendor registration guidelines separate from any other dockyard's, and to Hindustan Shipyard Limited, a defence public sector shipyard. Both are working buyers of marine engineering, electrical and repair capability, and both register and assess vendors against categories matched to core competence rather than a single blanket approval.

03

No corridor, but a real supply chain

Neither city sits inside India's two nationally notified Defence Industrial Corridors, which run through Uttar Pradesh and Tamil Nadu only. What Telangana and Andhra Pradesh have instead is the buyers themselves: DPSUs, a naval dockyard, a defence shipyard and a naval quality assurance establishment, plus their own state-level industrial policies. Nationally, about 16,000 MSMEs sit in the defence supply chain behind DPSUs and the 462 companies holding defence industrial licences, and a meaningful share of that base sits around exactly this kind of city-level buyer cluster.

04

What this means for a local supplier

A supplier based in Hyderabad or Visakhapatnam is closer, in practical terms, to its quality assurance authority and its DPSU or dockyard buyers than a supplier working the same categories from outside either state. Registration, inspection visits and factory acceptance trials still follow the same national rules described elsewhere in this hub; what differs locally is simply the travel time and the familiarity a nearby establishment builds with a regular supplier over repeated orders.

Asked next

Questions people also ask

What does the defence and aerospace ecosystem in Hyderabad and Visakhapatnam look like?

Is there a Defence Industrial Corridor in Telangana or Andhra Pradesh?

No. India's two nationally notified Defence Industrial Corridors run through Uttar Pradesh and Tamil Nadu only. Telangana and Andhra Pradesh instead host established defence organisations directly, such as DPSUs, a naval dockyard and a naval quality assurance establishment, and run their own separate state-level aerospace and defence industrial policies.

What defence organisations are based in Hyderabad?

Hyderabad hosts Bharat Dynamics Limited, a DPSU making missiles, and MIDHANI, which makes special alloys for aerospace and defence use, along with CQAE(N), the Chief Quality Assurance Establishment (Naval), a DQA(N) field unit in the DGQA Complex at Manovikas Nagar, Secunderabad. Together they give a local supplier both DPSU buyers and a naval quality assurance authority in one city.

What defence and naval organisations are based in Visakhapatnam?

Visakhapatnam is home to Naval Dockyard Visakhapatnam, which publishes its own vendor registration guidelines, and to Hindustan Shipyard Limited, a defence public sector shipyard. Both buy marine engineering, electrical and repair capability directly, which is what makes Visakhapatnam a working base for naval ship repair and support vendors rather than only a coastal location.

How many MSMEs work in India's defence sector overall?

A Ministry of Defence backgrounder dated 20 November 2025 put the figure at about 16,000 MSMEs working in the defence manufacturing ecosystem nationally, alongside DPSUs and 462 companies holding defence industrial licences. That is a national figure, not one broken out by state, but it sets the scale of the supply chain that city clusters such as Hyderabad and Visakhapatnam sit inside.

What is CQAE(N), and why does it matter to a Hyderabad supplier?

CQAE(N), the Chief Quality Assurance Establishment (Naval), is a field unit of DQA(N) located in the DGQA Complex at Manovikas Nagar, Secunderabad. For a Hyderabad-based supplier of naval electrical or electronics equipment, it is typically the nearby inspecting authority: the office that approves drawings and quality assurance plans and runs factory acceptance trials on naval stores from the region.

Checked against

Sources

  1. 01Defence Industrial Corridors: nodes and coverage, Press Information Bureau, Ministry of Defence
  2. 02Vendor registration guidelines, Bharat Dynamics Limited
  3. 03Guidelines for online vendor registration, Mishra Dhatu Nigam Limited (MIDHANI)
  4. 04DQA(N) field establishments, including CQAE(N), Directorate General of Quality Assurance, Ministry of Defence
  5. 05SRIJAN portal and DPSU indigenisation update, Press Information Bureau, Ministry of Defence

This guide explains how the system works in general, as the documents above describe it, and was last checked on 23 September 2026. Rules and thresholds change: the governing document is the authority, not this page.

Have a requirement rather than a question?

Send the specification, the part or the drawing. The first reply says what we can do and what we need from you.