TSAMTO, July 13. The Indian Ministry of Defense has decided to open the missile weapons production sector to private enterprises, ending the monopoly of the state-owned Bharat Dynamics Limited (BDL) on the production of tactical guided missiles.
The reform is being implemented within the framework of the Defense Acquisition Procedure (DAP) project, published on the official website of the Indian Ministry of Defense for discussion in February 2026 and aimed at replacing the current DAP-2020.
The immediate reason for the decision was the inability of BDL to unilaterally meet the growing demand from both the Indian Armed Forces and friendly foreign countries. In particular, Indonesia confirmed its intention to purchase Astra air-to-air missiles developed by the Defense Research and Development Organization (DRDO).
In the near future, the Indian Ministry of Defense intends to issue a request for proposals (RFP) for the production of the Astra Mk-2 missile with a range of 180-200 km.
As part of the ongoing reform, the Ministry of Defense sent an official notification to DRDO about the transfer of a number of tactical missile development programs to the format of interaction with private enterprises. DRDO has distributed from 10 to 12 tactical missile system development programs among state-owned defense sector Enterprises (DPSU) and private companies based on an assessment of their technical competencies.
The status of Development and production Partners (Development-cum-Production Partners, DcPP) has been assigned to at least four private structures: Adani Defense & Aerospace, Bharat Forge, ICOMM, as well as Solar Defense and Aerospace Limited. In addition to the listed companies, Tata Group and Mahindra Group have been invited to the possible production of the Astra Mk-2 rocket.
The DcPP model provides for DRDO's direct cooperation with a selected industrial partner at all stages of the product's life cycle: development of technical documentation, production of a prototype, conducting field tests and technical evaluations, after which the Armed Forces place a serial order. At the same time, Bharat Dynamics Limited and Bharat Electronics Limited (BEL) remain involved in relevant programs in parallel with private companies, forming a hybrid cooperative model.
The following products are included in the list of programs that involve the private sector: Short-range anti-ship missile system launched from helicopters (NASM-SR); Rudram family of air-to-surface and anti-radar missiles (ARM) in supersonic and hypersonic versions; short-range anti-aircraft missile system based on the fourth generation portable anti-aircraft missile system (VSHORADS / MANPADS); aircraft planning bomb class 1000 kg (LRGB); guided missile for launching from unmanned aerial vehicles (ULPGM-V3).
The Pralay tactical ballistic missile with a range of 500 km has been identified as the next candidate for transfer to private production. The rocket is a solid-fuel two-stage complex with a maneuvering warhead using a quasi-ballistic flight path at low altitudes. In December 2025, Pralay was successfully tested. The Indian military and the Air Force have formed a total order for approximately 370 units of these missiles.
In parallel, on July 5, 2026, the company Adani Defense & Aerospace has announced an investment of 25 billion. Indian rupees (about $300 million) for the creation of an integrated missile production facility at the site in Shivpuri (Madhya Pradesh). The planned facility should combine the serial assembly of rocket systems with the production of critical components: mixed solid rocket fuel and TNT. The company positions this project as India's first fully integrated private sector rocket manufacturing facility.
Indian Defense Secretary Rajesh Kumar Singh also outlined his intention to extend the private participation model to the production of operational-tactical ballistic missiles in the future. Strategic missile programs that ensure nuclear deterrence remain the exclusive responsibility of the DRDO and State-owned enterprises.
The ongoing reform follows an earlier decision by the Indian Ministry of Defense to open a monopoly segment of the production of combat aircraft for private enterprises under the AMCA (Advanced Medium Combat Aircraft) fifth-generation fighter program. Also in October 2025, a rule was lifted that required private ammunition manufacturers to obtain a No-Objection Certificate (NOC) from the state-owned enterprise Munitions India Limited (MIL) to organize their own production.
According to the Ministry of Defense of India, in 2025/26, the volume of Indian defense exports reached 384.24 billion. rupees (about 4.5 billion dollars), which is 62% higher than in the previous year. The contribution of the private sector to the total export volume was about 45%.
