Major Defence Push: Centre Opens Missile Manufacturing to Private Companies

Centre Plans to Open Missile Manufacturing to Private Firms in Major Defence Reform

In a significant policy shift aimed at strengthening India’s defence manufacturing capabilities, the Centre is preparing to allow private Indian companies to develop and manufacture missiles—a domain that has traditionally been reserved for state-owned defence organisations.

The move comes as India seeks to expand domestic production capacity, meet the growing requirements of the armed forces and tap rising international demand for indigenous missile systems. Interest from countries such as Indonesia in acquiring the DRDO-developed Astra missile has further accelerated the push to widen the manufacturing base.

Private Sector to Build Astra Mk-2

According to reports, the Defence Ministry is expected to soon issue a Request for Proposal (RFP) inviting private companies to manufacture the Astra Mk-2 beyond-visual-range (BVR) air-to-air missile.

Leading defence manufacturers, including Adani Defence, Bharat Forge, Tata Group, Mahindra Group and ICOMM, are likely to compete for the project.

Developed by the Defence Research and Development Organisation (DRDO), the Astra Mk-2 has a strike range of 180-200 kilometres and has been designed to enhance India’s air combat capability against advanced long-range threats. The missile is expected to be integrated with platforms such as the Tejas Mk-1A, MiG-29, Su-30MKI and Rafale Marine fighter aircraft.

The decision is driven by increasing demand from both the Indian military and friendly foreign nations, with existing production capacity proving insufficient to meet future requirements.

Pralay Missile May Be Next

The government is also considering opening the Pralay tactical ballistic missile programme to private industry for development and manufacturing.

Pralay is a 500-kilometre-range, two-stage tactical ballistic missile capable of travelling at hypersonic speeds of around Mach 6. It is part of India’s expanding long-range precision strike capability, alongside systems such as the Long-Range Land Attack Cruise Missile (LRLACM), the next-generation BrahMos missile, and the extended-range Pinaka rocket system.

Push for Greater Self-Reliance

The proposed reforms reflect the government’s broader effort to accelerate defence self-reliance by increasing private-sector participation in strategic manufacturing.

Over the past few years, private companies have already entered sectors such as fighter aircraft components, drones, artillery systems, armoured vehicles and naval platforms. Opening missile production would represent one of the most significant milestones in India’s defence industrial transformation.

The renewed focus on missile capabilities has gained momentum following Operation Sindoor, which highlighted the growing importance of long-range precision weapons and stand-off strike capabilities in modern warfare.

Expanding Air Defence Capabilities

Alongside boosting missile production, India is also strengthening its air defence architecture.

The country is jointly developing advanced long-range surface-to-air missile systems with Israel while expanding its multi-layered air defence network to counter drones, cruise missiles and ballistic missile threats. India is also expected to receive the fifth S-400 air defence system later this year, further enhancing its ability to protect critical military and civilian infrastructure.

The planned opening of missile manufacturing to private industry is expected to increase production capacity, encourage technological innovation and position India as a stronger player in the global defence export market while supporting the country’s long-term strategic and security objectives.

The government also plans to approve the procurement of five additional S-400 systems from Russia to further strengthen protection against incoming enemy missiles.

According to the report, the S-400 systems will themselves be protected by Russia’s Pantsir air defence system against kamikaze drones and rocket attacks.