Why the Change Matters
The Defence Ministry has unveiled a shift in India’s strategic manufacturing landscape by opening the development and production of missiles, artillery shells, ammunition, and ordnance to private sector participation. The move aligns with Prime Minister Narendra Modi’s push toward Atmanirbharta (self-reliance) in defence and is aimed at ensuring sustained firepower in potential long-term hostilities. While officials have remained tight-lipped, multiple sources indicate a formal amendment to the Revenue Procurement Manual (RPM) that no longer requires private entities involved in bombs and ammunition to obtain a no-objection certificate (NOC) from the state-owned MIL (Munitions India Limited) before setting up an ammunition unit.
What Could Change on the Ground
Industry sources suggest that private firms may now manufacture a broad slate of conventional munitions, including 105 mm, 130 mm and 150 mm artillery shells, Pinaka missiles, 1000-pound bombs, mortar rounds, hand grenades, and various calibers of ammunition. This expansion is seen as a response to the evolving needs of the armed forces, particularly in scenarios requiring rapid ramp-up of production in a protracted conflict.
Missile Development and DRDO Involvement
In parallel with the ammunition reforms, the Defence Ministry reportedly signaled its intent to broaden private sector participation in missile development and integration. The government has previously relied heavily on public-sector players such as Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL), both part of the DRDO ecosystem, to supply key platforms including surface-to-air missiles and related systems. However, officials acknowledge that DRDO alone cannot meet the entire demand spectrum, especially as India seeks to diversify its supplier base for stand-off and conventional missiles.
Strategic Rationale
Defense observers point to several strategic rationales behind opening up these sectors. The experience from recent campaigns, including cross-border skirmishes where stand-off weapons and air defense played decisive roles, has underscored the importance of resilient, domestically capable supply chains. The private sector’s involvement could accelerate development cycles, enhance competition, and reduce dependence on foreign vendors during crises created by global supply chain constraints or geopolitical tensions.
Implications for the Armed Forces
With more private producers in the fold, the Indian armed forces could gain quicker access to a broader portfolio of conventional missiles and ammunition. Analysts expect this to improve stock availability, price discipline, and innovation in propulsion, guidance, and warhead technologies while maintaining strict export controls and security clearances. The emphasis remains on a balanced approach where DRDO continues to lead strategic, high-end missile development while private players handle more routine, high-volume items.
Geopolitical Context
The timing coincides with regional and global tensions, where the demand for missiles and ammunition has surged due to ongoing conflicts in adjacent regions and the global shift in defence supply chains. As R&D and manufacturing capabilities expand, India aims to reduce vulnerabilities that could compel emergency imports at premium prices. Observers note that a stronger domestic industrial base could also provide greater leverage in international defence collaborations and negotiation dynamics.
Looking Ahead
Experts caution that implementation will hinge on robust regulatory frameworks, stringent quality controls, and a secure ecosystem to safeguard sensitive technologies. The path forward will likely involve staged onboarding of private players, enhanced oversight, and continued collaboration with DRDO to maintain technological edge while expanding production capacity. If successful, this reform could mark a significant step in India’s long-term strategy for self-reliant defence manufacturing.
