India opens missile manufacturing to private sector
Analysis based on 6 articles · First reported Jul 12, 2026 · Last updated Jul 12, 2026
The policy shift is expected to boost India's defense manufacturing sector, benefiting private players like Tata Group and Adani Group. Increased production capacity and export potential may strengthen India's position as a defense exporter, positively impacting the defense industry.
India's Ministry of Defence is preparing to allow private Indian companies to manufacture strategic missiles, a significant policy shift. The move follows growing international interest in the DRDO-developed Astra missile, with Indonesia interested in acquiring it. State-owned Bharat Dynamics Limited cannot meet rising demand. The Defence Ministry will issue a Request for Proposal for private firms to manufacture the Astra Mark 2 beyond-visual-range air-to-air missile. Companies likely to participate include ICOMM, Adani Group, Bharat Forge, Tata Group, and Mahindra Group. The Pralay tactical ballistic missile may be the next system opened to private industry. The policy change is driven by lessons from Operation Sindoor and the Iran-US conflict, emphasizing stand-off weapons and air defense. India is also expanding its air defense network, including collaboration with Israel on a naval surface-to-air missile system, building a multi-layered anti-missile and anti-drone network, and planning to acquire additional S-400 systems from Russia.
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