Missile production | PrIvate sector gets a boost

The government's decision to transfer DRDO-developed missile technology to private companies is a step towards combat readiness and the development of a military-industrial baseSEEKING THE ENEMY: An Akash surface-to-air missile system being tested at the Pokhran Range; Feb. 27, 2026. (Photo: Hindustan Times)ISSUE DATE: Oct 26, 2026 | Oct 17, 2026 14:35 IST In modern warfare, Having a potent missile force depends on having a domestic industry that keeps a military well-supplied with them. Indigenous production of military hardware has been one of the focus areas of the Aatmanirbhar Bharat policy under the Narendra Modi government. That push for self-reliance got a fillip in late August when defence minister Rajnath Singh approved a landmark decision to allow the Defence Research and Development Organisation (DRDO) to transfer technologies for conventional missile systems it has developed to Indian private sector defence companies. The aim is to enable Indian defence firms to build industrial-scale production of missiles and building stockpiles as well as helping the gradual development of a mature military-industrial base. The move marks a departure from the long-standing practice in which DRDO handled research and development while Defence Public Sector Undertakings (DPSUs) such as Bharat Dynamics Limited took care of production. Till now, private firms had been restricted to supplying components and subsystems of defence products, including missiles. The new policy opens the door for them to manufacture complete missile systems, subject to rigorous technical qualifications and regulatory clearances. One objective is to expand MSME (Micro, Small and Medium Enterprises) participation across the value chain—from production and systems integration to testing, upgrades and long-term support—while reducing dependence on imports.