Defence Ministry opens missile and ammunition sector to private players

The Defence Ministry has allowed private companies to develop and manufacture missiles, artillery shells, ammunition, and ordnance, aiming to ensure India’s armed forces have sufficient firepower during long-term hostilities. The move aligns with the government’s push for self-reliance, or Atmanirbharta, in defence production.

Private sector entry into missile development

Sources familiar with the matter told HT that the missile sector has been opened to private players following lessons from Operation Sindoor, which highlighted the growing importance of stand-off weapons and long-range conventional missiles. Companies will now be permitted to manufacture artillery shells in calibres of 105 mm, 130 mm, and 150 mm, Pinaka missiles, 1,000-pound bombs, mortar bombs, hand grenades, and medium and small-calibre ammunition.

Previously, any private entity required a no-objection certificate (NOC) from the state-owned Munitions India Limited (MIL) before setting up an ammunition unit. An amendment to the Revenue Procurement Manual (RPM) has now removed this mandatory requirement, facilitating easier entry for private players.

Collaboration with DRDO

The Defence Ministry has also communicated its intent to the Defence Research and Development Organization (DRDO) to open up missile development and integration to private firms. State-owned entities such as Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL) under DRDO have been the sole manufacturers of missiles and surface-to-air missile systems, including Akash, Astra, Konkurs, Milan, as well as torpedoes.

Sources emphasised that private sector participation is necessary to meet the growing demand of the Indian armed forces, especially for conventional missile systems. Strategic missile development, however, will remain under DRDO’s exclusive control.

Strategic rationale

The government’s decision is informed by recent operational experiences, including Pakistan’s use of long-range Chinese air-to-air and air-to-surface missiles during Operation Sindoor. Defence experts note that future battles will rely on stand-off weapons and anti-missile defence, reducing the role of traditional fighter aircraft.

For instance, India’s S-400 system successfully intercepted a Pakistan ELINT aircraft over Punjab during Operation Sindoor on May 10, demonstrating the importance of missile-based warfare. With global conflicts driving up demand for weapons and ammunition, the ministry aims to avoid reliance on foreign suppliers and ensure domestic production meets operational requirements.

Conclusion

By opening both the missile and ammunition sectors to private players, India aims to bolster its defence manufacturing base, reduce strategic dependence on foreign suppliers, and ensure the armed forces remain prepared for long-term conflicts. This initiative is expected to boost domestic innovation, create strategic capacity, and strengthen the country’s self-reliance in defence technology.