India has taken a significant step towards expanding private-sector participation in advanced defence manufacturing after Defence Minister Rajnath Singh approved the transfer of Defence Research and Development Organisation (DRDO)-developed technologies for all conventional missile systems to the Indian defence industry.
The decision is aimed at accelerating the transition of indigenous missile technologies from development to industrial-scale production. Under the initiative, eligible Indian defence companies will be able to manufacture conventional missile systems domestically, subject to the required qualifications, certifications and regulatory approvals.
The move is being viewed as an important development in India’s effort to build a stronger and more self-reliant defence manufacturing ecosystem. By allowing domestic industry to absorb DRDO technologies, the government intends to increase production capacity, strengthen domestic supply chains and reduce dependence on foreign sources for critical military equipment.
The Ministry of Defence said the initiative will also create greater opportunities for Indian MSMEs and other technology partners to participate in the missile manufacturing supply chain. DRDO will continue to work with industry to facilitate the transfer and absorption of advanced technologies and support their transition into production.
India has already expanded private-sector involvement across several areas of defence production, but the latest decision gives domestic companies a broader opportunity to participate directly in the manufacturing of indigenous missile systems. The policy comes at a time when the armed forces are seeking faster induction of modern weapons and greater assurance of domestic production capacity.
The government’s focus on missile manufacturing also reflects the growing importance of indigenous precision and strike capabilities in modern warfare. Recent developments in India’s missile programme include advances in systems such as the Long-Range Land Attack Cruise Missile, RudraM-II, Naval Anti-Ship Missile-SR and other indigenous strike technologies. Rajnath Singh recently highlighted these developments while outlining the country’s broader defence modernisation efforts.
The latest policy is specifically focused on conventional missile systems. It does not represent an opening of India’s strategic missile programmes to private production. Instead, the emphasis is on conventional capabilities that can support the operational requirements of the armed forces while strengthening the domestic industrial base.
The expansion of private manufacturing could also help India build greater production resilience. A wider network of defence manufacturers, component suppliers and technology partners can provide additional industrial capacity and reduce dependence on a limited number of production facilities.
The decision comes amid the government’s broader push to increase private-sector participation in defence manufacturing. India’s domestic defence production reached a record ₹1.78 lakh crore during financial year 2025-26, while the private sector accounted for around 24 per cent of total production, according to figures cited by the Defence Ministry. The government has set its sights on further increasing private-sector participation as part of its Aatmanirbhar Bharat defence strategy.
For the Indian defence industry, access to DRDO-developed missile technologies could create opportunities not only for major manufacturers but also for smaller companies involved in electronics, propulsion, guidance systems, materials, engineering and other specialised components.
The technology-transfer initiative therefore represents a broader shift in India’s defence manufacturing approach. Instead of limiting advanced indigenous technologies to development and government-controlled production channels, the government is seeking to leverage the wider capabilities of the domestic industrial sector.
As the technology-transfer process moves forward, the selection of eligible companies, industrial qualification and production capacity will determine how quickly these missile systems can move into expanded manufacturing. The initiative could ultimately strengthen India’s ability to produce critical conventional weapons within the country while supporting the long-term objective of building a competitive and self-reliant defence industrial base.