India to let private firms build missiles in biggest defence manufacturing reform

India is set to open missile manufacturing to the private sector in one of the country's biggest defence policy changes, with the Centre preparing to allow domestic companies to build and develop missiles for the first time.

The move comes as demand for indigenous missile systems rises from both the Indian armed forces and friendly foreign nations, including Indonesia, which has shown interest in acquiring the Defence Research and Development Organisation's (DRDO) Astra missile. The policy shift is also aimed at expanding production capacity and supporting defence exports.

While India has already permitted private participation in sectors such as aircraft, drones, artillery and naval platforms, missile production has remained largely under state-run defence organisations because of its strategic importance.

Private firms to compete for Astra Mark 2 production

According to information accessed by Hindustan Times, the Defence Ministry is expected to issue a Request for Proposal (RFP) shortly, inviting private companies to manufacture the Astra Mark 2 beyond-visual-range (BVR) air-to-air missile.

More from India

Companies likely to participate include ICOMM, Bharat Forge, the Tata Group and the Mahindra Group.

The decision follows increasing demand that state-owned Bharat Dynamics Ltd is currently unable to fully meet.

Developed by the DRDO, the Astra Mark 2 has a strike range of 180-200 kilometres and was designed to counter China's long-range PL-15E air-to-air missile, which was supplied to Pakistan ahead of Operation Sindoor last year.

The missile is expected to be integrated with the Tejas Mark 1-A, MiG-29, Su-30 MKI and Rafale Marine fighter aircraft.

Pralay missile may be next

People familiar with the development said the Pralay tactical ballistic missile is expected to become the next missile system opened to private companies for both development and manufacturing.

Pralay has a range of 500 kilometres and is a two-stage missile capable of travelling at six times the speed of sound.

It is part of India's Integrated Rocket Forces, which also include the Long-Range Land Attack Cruise Missile (LRLACM), the next-generation BrahMos missile and the extended-range Pinaka multi-barrel rocket launching system, capable of striking targets up to 300 kilometres away.

Operation Sindoor reshaped defence priorities

The government's latest initiative follows the lessons drawn from Operation Sindoor, which underscored the growing role of stand-off weapons in the Indian subcontinent.

According to the report, the Modi government is seeking to rapidly expand India's missile and rocket inventory to strengthen deterrence capabilities. The emphasis extends to both offensive missile systems and defensive anti-ballistic missile shields.

The recent Iran-US conflict has also highlighted the destructive impact missiles can have on critical infrastructure, reinforcing the importance of strengthening India's missile defence architecture.

Alongside increasing missile production, India is continuing to reinforce its air defence network.

India and Israel are jointly developing a long-range surface-to-air missile for naval warships.

The country is also building a multi-layered anti-missile and anti-drone defence system to counter low-cost Turkish drones used by Pakistan, as well as long-range rockets and ballistic missiles deployed by China's People's Liberation Army (PLA).

The fifth S-400 air defence system is expected to arrive in India in November.

According to the report, the government also plans to approve the procurement of five additional S-400 systems from Russia to further strengthen protection against incoming missile threats.

The report added that the S-400 batteries themselves will be protected by Russia's Pantsir air defence system against kamikaze drones and rocket attacks.