The Ministry of Defence (MoD) has approved the transfer of DRDO missile technology to private Indian industry. The move covers conventional missile systems. Notably, strategic nuclear systems will remain strictly with the government. Clearly, this is a big step for India’s defence manufacturing.
Missiles Covered Under the Transfer
- Akash: Surface-to-air missile
- Astra: Beyond-visual-range air-to-air missile
- Pralay: Quasi-ballistic missile
- Nag: Anti-tank guided missile
- Rudram: Anti-radiation missile
Why Open DRDO Missile Technology to Private Firms?
So far, Defence Public Sector Undertakings (DPSUs) have dominated missile production. For example, Bharat Dynamics Limited (BDL) makes many of India’s missiles. However, private firms contribute only about 24 per cent of domestic defence production. Meanwhile, DPSUs produce the remaining 76 per cent. Therefore, this transfer breaks the DPSU monopoly in missiles.
Background: India’s Defence Production
India’s domestic defence production reached ₹1.78 lakh crore in 2025–26. In comparison, it stood at just ₹46,500 crore in 2014–15. Also, defence exports touched ₹38,424 crore across more than 80 countries. Furthermore, the government aims for ₹3 lakh crore in production by 2029–30. Similarly, it targets ₹50,000 crore in exports by then.
Key Benefits of the Move
Surge capacity for war: Recent conflicts, such as in Ukraine and West Asia, used precision weapons very fast. However, DPSUs have limited capacity. So, a wider private base can provide vital surge capacity.
Less vulnerability: Concentrating missile assembly in a few state-run units creates single points of failure. In contrast, many private production lines across regions offer resilience against targeted strikes.
Faster supply: Also, shorter delivery times mean quicker restocking for the Army, Navy and Air Force.
Challenges Ahead
Still, true strategic autonomy needs more than technology transfer. Above all, private firms must invest heavily in high-risk defence research. Also, they need assured orders to justify such investment. Hence, steady policy support will remain important.
Why DRDO Missile Technology Transfer Matters for UPSC and UKPSC
Notably, defence indigenisation is a key GS Paper III topic. So, remember the five missiles and their types. Also, note the production and export figures. For official updates, also visit DRDO. Next, for a related story, read about Yudh Abhyas 2026 at Auli.
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