Big Defence Boost: Centre To Let Private Firms Build India’s Missiles — What It Means

Last Updated:July 12, 2026, 09:02 IST

Centre's decision follows growing demand from the Indian armed forces and friendly foreign countries, which state-owned Bharat Dynamics Ltd is currently unable to fully meet.

In a major shift in India’s defence manufacturing policy, the Centre is preparing to allow private Indian companies to build and develop missiles, a sector that has so far remained largely under state-run defence organisations.

The move comes as Indonesia has expressed interest in acquiring the Defence Research and Development Organisation’s (DRDO) Astra missile, while the government looks to expand domestic production and meet rising export demand.

India has already opened several defence sectors to private participation, including aircraft, drones, artillery and naval platforms. Opening the missile sector would mark one of the biggest reforms in the country’s defence manufacturing, as missile production has traditionally been regarded as a strategic and tightly controlled area.

Private firms to manufacture Astra Mark 2

According to information accessed by Hindustan Times, the Defence Ministry will soon issue a Request for Proposal (RFP) inviting private companies to manufacture the Astra Mark 2 beyond-visual-range (BVR) air-to-air missile. Companies expected to participate include ICOMM, Adani, Bharat Forge, the Tata Group and the Mahindra Group.

The decision follows growing demand from the Indian armed forces and friendly foreign countries, which state-owned Bharat Dynamics Ltd is currently unable to fully meet.

The Astra Mark 2 has a strike range of 180-200 kilometres and has been developed by the DRDO. It 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 Tejas Mark 1-A, MiG-29, Su-30 MKI and Rafale Marine fighter aircraft.

Pralay missile next in line

People familiar with the development said the next missile likely to be opened to the private sector for both development and manufacturing is the Pralay tactical ballistic missile.

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

It forms part of India’s Integrated Rocket Forces, which also include the newly developed 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.

Focus shifts after Operation Sindoor

The government’s latest push comes after Operation Sindoor highlighted the growing importance of stand-off weapons in the Indian subcontinent.

According to the report, the Modi government now wants to rapidly strengthen India’s missile and rocket arsenal to improve deterrence against adversaries. The focus is on both offensive missiles and defensive anti-ballistic missile systems.

The recent Iran-US conflict has also underlined the damage missiles can inflict on critical infrastructure, reinforcing the need for stronger missile defence capabilities.

India strengthening air defence network

Alongside expanding missile production, India is also working to strengthen its air defence network. India and Israel are jointly developing a long-range surface-to-air missile to protect naval warships.

At the same time, the country is building a multi-layered anti-missile and anti-drone network 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.

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.

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