Defence Ministry Opens DRDO Conventional Missile Technology to Private Firms

NEW DELHI — In a significant policy shift for India's defence sector, Defence Minister Rajnath Singh has approved the transfer of Defence Research and Development Organisation (DRDO) conventional missile system technology to private companies in the country. The decision transitions conventional missile system development from public sector monopoly to industrial production.

This development follows a distribution of 10 to 12 DRDO tactical missile-development projects among two public and four private companies—Adani, Bharat Forge, ICOMM, and Solar Defence—based on their operational capabilities. This marks a clear departure from the earlier practice of relying primarily on Bharat Dynamics Ltd (BDL), a defence public sector undertaking (PSU), as the sole production partner.

According to the Ministry of Defence, the transfer of technology marks an important milestone in promoting greater participation of domestic industries in the defence ecosystem. It enables private firms to undertake indigenous production in accordance with applicable qualifications, certifications, and regulatory requirements.

Conventional missile systems defined under this initiative include weapons currently used or planned for use by defence forces, such as the BrahMos missile. Strategic missiles carrying nuclear warheads, managed by the Strategic Forces Command—including the Agni series and sea-based or submarine-launched K-series—remain under separate management.

The ministry stated that the objective is to enhance domestic manufacturing capabilities, strengthen the industrial base, and create opportunities for Indian MSMEs and technology partners within the supply chain. People familiar with the matter noted that there are currently 50 to 60 different classes and platforms of indigenously developed missiles, many of which meet contemporary global standards.

Private industry is already collaborating with DRDO on specific projects, including the Naval Anti-Ship Missile — Short Range (NASM-SR), which is India's first indigenous helicopter-launched anti-ship missile, and the Rudram I, II, and III series of supersonic and hypersonic air-to-surface and anti-radiation missiles.

Removing entry barriers in the indigenous missile manufacturing ecosystem also aligns with the requirements outlined in the proposed Defence Acquisition Procedure (DAP) 2026. The broader government initiative aims to enhance operational capability, reduce import dependence, increase domestic value addition, and support the overall growth of India's defence manufacturing sector.

"Opening up strategic defence manufacturing to private enterprises is a monumental shift for the Indian industrial ecosystem. By decentralizing production from PSUs to capable private firms and MSMEs, the government is fostering a competitive domestic supply chain. This move not only reduces import dependence and boosts indigenous capabilities, but it also creates vast opportunities for technology partners and industrial manufacturers to contribute directly to national security infrastructure." — Dr. Shishir Gupta, Founder & CEO, StartupLanes