The Defence industry of India is a strategically important sector in India. With strength of over 1.3 million active personnel, it is world's third-largest military force and has the world's largest volunteer army. The total budget sanctioned for the Indian military for the financial year 2015 is INR 2.47 trillion ($40.07 billion).

With the increase in FDI cap, many private players from other developed countries are bound to become a part of Indian defence ambit by increasing their investments in Indian defence companies. SEMCO’s proximity to the ministry of defence as well as all the ministries in the Delhi region that control Central Armed Police Force, Paramilitary Forces and Special Forces makes it a well-established entity in this field.