Rajnath Singh Opens All DRDO Conventional Missile Technologies to Indian Industry
New Delhi, August 26, 2026 — In a major shift for India’s missile manufacturing model, the government has opened all conventional missile systems developed by the Defence Research and Development Organisation (DRDO) to the domestic defence industry, ending a long-standing arrangement in which most tactical missiles were produced mainly by public-sector undertakings.
Defence Minister Rajnath Singh approved the Transfer of Technology (ToT) on Tuesday, August 25, allowing Indian companies to compete for the right to manufacture DRDO-developed conventional missiles. The Ministry of Defence described the move as a step that will take missile programmes from laboratory development to industrial-scale production within the country.
The ministry said the ToT is intended to “promote greater participation of the domestic industries in the defence ecosystem by enabling them to undertake indigenous production, as per applicable qualifications, certifications and regulatory requirements.” Officials said the broader goals are to build higher operational stocks, reduce dependence on imports, increase domestic value addition and create a larger role for Indian MSMEs and technology partners across the missile supply chain.
What the policy covers
The approval applies to all conventional missile systems developed by DRDO. In practice, that means non-nuclear, non-strategic guided weapons used for battlefield and tactical roles such as air defence, anti-armour, anti-ship, air-to-air and conventional land-attack missions. It does not extend to nuclear-capable strategic systems.
While the Ministry of Defence has not issued an official itemised list, reporting based on defence sources indicates that the systems now open to industry include the Akash and Akash-NG surface-to-air missiles, the Very Short Range Air Defence System (VSHORADS), the Astra family of beyond-visual-range air-to-air missiles including Astra Mk-I and Mk-II, the Rudram anti-radiation missile series, the Nag, SANT and man-portable anti-tank guided missiles, the Naval Anti-Ship Missile–Short Range (NASM-SR), and land-attack systems such as the indigenous long-range land-attack cruise missile and the Pralay quasi-ballistic surface-to-surface missile.
Some accounts also include a long-range anti-ship hypersonic missile within the conventional category being brought into industrial production.
The omission of an official list matters because not every missile will necessarily be transferred in the same way. Security classification, certification and the terms of each individual ToT contract will determine which firm can make which system and under what conditions.
Strategic nuclear-capable systems such as the Agni series and the K-series submarine-launched ballistic missiles remain outside the policy. Joint programmes governed by separate international arrangements, including BrahMos with Russia and MRSAM with Israel, are also not covered by this blanket ToT decision.
Breaking the old nomination model
For decades, the usual pattern in India’s missile sector was straightforward: DRDO would design a weapon, prove it in trials and then pass production know-how to a nominated public-sector unit. Bharat Dynamics Limited (BDL) was the most common manufacturing agency for missiles, while Bharat Electronics Limited (BEL) handled radars, fire-control systems and related electronics. Private firms supplied components and sub-systems, and later some development support, but they rarely got the right to integrate and serially produce a complete missile.
The new policy is meant to break that structure. Ministry sources told Business Standard that Indian firms will now compete through bidding to receive technology, be selected as Development-cum-Production Partners (DcPPs) and work on systems integration with DRDO.
That opens a clearer pathway for private firms that already co-develop and test prototypes with DRDO scientists. Once the Services place bulk orders, those companies could move from being development partners to full-scale production agencies.
The decision does not exclude the public sector. BDL and BEL remain important players, but they will no longer be the automatic and uncontested production agencies for every conventional missile emerging from DRDO laboratories.
Industry has already been moving in this direction
The August 25 approval formalises a shift that had already begun informally in several missile programmes.
In June, reporting showed that 10 to 12 DRDO tactical missile projects had been distributed among public and private firms based on capability, rather than being routed almost entirely through BDL. Four private companies — Adani Defence, Bharat Forge, ICOMM and Solar Defence and Aerospace — were identified as DcPPs on programmes expected to mature over three to five years. In some cases, BDL is already partnering with private firms rather than working in isolation.
Private participation is already visible in several ongoing programmes, including NASM-SR, India’s first indigenous helicopter-launched anti-ship missile, the Rudram I/II/III family, VSHORADS, the Long-Range Glide Bomb and the UAV-launched precision guided missile ULPGM-V3. L&T has contributed to work on Pinaka and Akash, while Solar Industries has built a strong presence in Pinaka and energetics. Component makers such as Astra Microwave and Apollo Micro Systems are part of the seeker, fire-control and propulsion chains and could benefit further if production volumes rise.
A day after the ToT approval, Hindustan Times reported that the government is identifying private producers for the Long Range Land Attack Cruise Missile, with a range of 1,000–1,500 km, and for Pralay, which has a range of roughly 150–500 km. Requests for proposals for Astra Mk-I, with a range of about 110 km, and Astra Mk-II, with a range of about 150 km, have already been sent to Indian industry on a ToT basis.
On August 17, a week before Singh’s approval, Research Centre Imarat in Hyderabad invited Indian companies to become long-term partners on missile and bomb projects under DRDO’s Missiles and Strategic Systems cluster. The Expression of Interest set strict eligibility criteria, including a turnover above ₹100 crore, proven industrial capacity, a defence manufacturing licence and a PESO explosives licence. Firms selected under that process are to be embedded in DRDO teams, and technology is to be transferred free of cost after development, in line with existing DRDO rules. The EoI and Tuesday’s ToT decision are related but different: one is about selecting partners for future development and production, while the other opens the wider conventional missile inventory to industry.
Companies frequently mentioned as likely contenders include Tata, Adani, Bharat Forge, Mahindra, ICOMM, L&T and Solar, alongside BDL and BEL. Officials have stressed that qualifications, capital, industrial infrastructure, quality systems and regulatory clearances will matter more than brand value alone.
Why the government is changing course
The decision appears to be driven by three broad pressures.
First is inventory. Modern air defence, anti-ship and precision-strike operations consume missiles much faster than earlier war-planning assumptions anticipated. India cannot depend indefinitely on a limited public-sector production base, especially when import dependence still exists in parts of the missile ecosystem.
Second is cost and competitiveness. Defence analysts and industry sources have long argued that limited cost competitiveness at public-sector plants has affected exports. In cases where production technology has already been shared, such as Pinaka rockets, private bids have often undercut public-sector pricing. The government appears to be seeking the same kind of price advantage at the level of complete missile systems.
Third is the broader Aatmanirbhar manufacturing push. India’s indigenous defence production reached a record ₹1.78 lakh crore in FY 2025-26, up 15.6 per cent from ₹1.54 lakh crore the previous year and more than double the ₹84,643 crore recorded in FY 2020-21. The private sector’s share rose to 24 per cent, or about ₹42,000 crore. Defence exports also hit a record ₹38,424 crore, with Indian equipment reaching more than 80 countries. The government’s targets are ₹3 lakh crore in annual production and ₹50,000 crore in exports by FY 2028-29. Missiles are among the highest-value items that can help push those figures upward if they can be manufactured at scale and at competitive prices.
The new policy also builds on an earlier change in DRDO’s technology-transfer framework that waived the old 20 per cent fee for Development-cum-Production Partners, Development Partners and Production Agencies. Singh said earlier in 2026 that more than 2,200 DRDO technologies had already been transferred to industry under that framework. Patents have been opened to Indian industry, and DRDO test facilities are available for use by firms on payment. The missile ToT decision extends that approach to the most sensitive conventional product line in DRDO’s portfolio.
What it will take to manufacture these missiles
A ToT approval does not mean production begins automatically. Guided-weapon manufacture requires licensed handling of explosives and propellants, seeker and warhead integration under classified conditions, environmental and electromagnetic qualification, flight trials, strict configuration control and a vendor base capable of supplying composites, inertial sensors, RF seekers, actuators and special materials.
The ministry has made it clear that production will be permitted only subject to qualifications, certifications and regulatory requirements. That acts as both a quality filter and a security filter. Companies that are limited to assembly work, or that do not have the required PESO and defence manufacturing licences, will not be able to move into full missile production.
DRDO is expected to continue working with industry on technology absorption rather than simply handing over drawings. That would involve resident teams, joint design reviews and DRDO remaining the design authority for the baseline configuration even when a private company becomes the production agency. Officials have also indicated that variants tailored to Service requirements would still need DRDO or user clearance before they are released for production.
MSMEs are likely to gain mainly as Tier-2 and Tier-3 suppliers of structures, harnesses, actuators, electronic modules and ground-support equipment rather than as prime integrators. That structure reflects how missile supply chains function globally, and the policy’s reference to MSMEs will only translate into expanded participation if prime manufacturers are required to multi-source rather than build everything in-house.
What changes for the armed forces, industry and exports
For the armed forces, the immediate benefit should be more production lines for systems such as Akash-class surface-to-air missiles, Astra-class air-to-air missiles, Pralay-class strike missiles and anti-tank weapons. That would help replenish war reserves and replace missiles used in training. However, the move will not automatically shorten development cycles. Seekers, propulsion systems and software still take years to mature; the policy is aimed primarily at industrialising designs once they are frozen.
For BDL and BEL, the new regime ends their uncontested position but not their relevance. Both companies have established infrastructure, deep process knowledge and existing order books. They can still bid as prime manufacturers, partner with private firms or focus on the strategic and joint programmes that remain outside open ToT. Analysts tracking the sector have identified BEL, BDL, Solar Industries, L&T, Astra Microwave and Apollo Micro Systems among the companies likely to benefit if orders expand.
For exports, the policy could be important if India wants to offer missile systems such as Astra, Akash or Pralay in government-to-government packages without waiting on a single public-sector production line. India already exports air-defence and rocket-artillery systems, but any missile export will still require political clearance, end-use controls and, in some cases, tighter technology-security assessments than those applied to civilian goods or small arms.
The strategic implications are more limited. Some reports note that private industry already supplies many missile sub-systems even on programmes it does not integrate. Officials have described conventional missile ToT as a possible first step in building industrial capacity that could one day support more sensitive production, but that remains an inference rather than a declared government policy. Agni and K-series production continues to remain a state preserve.
There are also risks. If too many firms are licensed for the same missile, the result could be fragmented learning and insufficient scale. Quality failures in a seeker or warhead batch would have direct operational consequences and could weaken confidence in the Aatmanirbhar push. Over-classification could also blunt the reform if companies receive only airframes and motors while the most performance-critical systems remain locked behind special clearances. The effectiveness of the policy will depend on how it is implemented.
The bigger industrial shift
India now says it has developed 50 to 60 classes and platforms of missiles indigenously, many of them described by officials as contemporary by global standards. The challenge has never been only invention; it has been industrial repetition — making the same missile to the same standard, in large enough numbers and at a cost the Services and export customers can afford.
Tuesday’s approval is an attempt to treat conventional missiles more like artillery rockets, small arms and some electronics: products that can be competed for, licensed and exported rather than confined to a nominated production line. Whether that shift truly takes hold will become clear over the next two or three years, when the number of signed ToT contracts, the emergence of more than one qualified source for systems such as Astra and Pralay, the growth of MSME content and the delivery schedules offered in export bids will reveal how far the policy has gone.
For now, the government has opened the door. The next test is whether industry can build the factory behind it.
