Ministry of Defence Allows Private Sector in Indigenous Missile Production, Ends Bharat Dynamics' Monopoly
The Ministry of Defence has introduced a significant initiative allowing private industry to produce indigenous tactical missiles, marking a shift from Bharat Dynamics Limited's (BDL) longstanding role as the primary production partner for these systems. This move is part of efforts to enhance defence indigenisation and encourage private sector involvement.
As part of the new strategy, the Defence Research and Development Organisation (DRDO) has allocated 10-12 tactical missile development projects to various public and private sector companies. These allocations are based on the companies' technological and manufacturing strengths. The objective is to accelerate missile development, boost production capacity, and create fair competition within the Indian defence industry.
This development aligns with the goals of the anticipated Defence Acquisition Procedure (DAP) 2026 and India's aim to achieve greater self-reliance in advanced weapon systems, in line with the Atmanirbhar Bharat programme.
Four major private defence firms, namely Adani Defence & Aerospace, Bharat Forge, ICOMM Tele Limited, and Solar Defence and Aerospace, have been selected as Development-cum-Production Partners (DcPPs) for various DRDO missile projects.
The DcPP model facilitates collaboration between industry partners and DRDO from the initial development stages through to design validation, trials, and eventual production. This approach is expected to reduce development timelines and enable quicker induction into service.
Alongside these private firms, defence public sector undertakings such as Bharat Dynamics Limited and Bharat Electronics Limited (BEL) will also continue their participation in selected programmes.
The missile projects encompass several advanced indigenous systems, including:
| Pralay tactical ballistic missile |
| Naval Anti-Ship Missile Short Range (NASM-SR) |
| Rudram-I |
| Rudram-II |
| Rudram-III |
| VSHORADS |
| Long-Range Glide Bomb (LRGB) |
| UAV-Launched Precision Guided Missile (ULPGM-V3) |
Of particular note is the Pralay missile, which successfully completed user evaluation trials in late 2025 and exhibited precise strike capabilities against targets ranging from 150 to 500 kilometres.
Officials from the defence sector have pointed out the increasing significance of tactical missile systems in global conflicts, as evidenced by recent events. Precision-guided missiles, loitering munitions, and long-range strike capabilities are becoming crucial in shaping battlefield dynamics, prompting the Indian Armed Forces to pursue indigenous alternatives to foreign systems.
This policy adjustment is also expected to facilitate future discussions on establishing a dedicated rocket or missile force capable of executing coordinated long-range precision strikes and countering aerial threats.
The initiative is part of a broader series of defence reforms aimed at increasing private sector participation in aerospace and military manufacturing. The government is also exploring the potential of permitting private companies to manufacture ballistic missiles in the future.
By diversifying production partners and harnessing private sector innovation, the Ministry of Defence seeks to fortify India's defence industrial base, enhance production capabilities, and expedite the development of advanced indigenous missile systems for the Armed Forces.
