New policy shift opens private sector to missiles and munitions
The Defence Ministry of India has announced a strategic policy shift aimed at strengthening long-term military readiness by expanding private sector participation in the development and manufacture of missiles, artillery shells, ammunition, and ordnance. The move aligns with the government’s broader push for self-reliance (Atmanirbharta) in critical defense sectors and seeks to ensure a more robust supply chain during extended hostilities.
Sources familiar with the development indicate that an amendment to the Revenue Procurement Manual (RPM) has removed the mandatory requirement for private entities involved in bombs and ammunition production to secure a no-objection certificate (NOC) from Munitions India Limited (MIL), the state-owned company. This change effectively lowers entry barriers for private firms looking to establish ammunition and related manufacturing facilities in India.
According to insiders, private manufacturers will now be able to produce a range of items including 105 mm, 130 mm, and 150 mm artillery shells, Pinaka missiles, 1000-pound bombs, mortar bombs, hand grenades, and both medium and small-caliber ammunition. The realignment signals a deliberate attempt to diversify the defense industrial base and reduce dependency on single-source suppliers in times of crisis.
Private sector participation in missiles and strategic systems
Beyond ammunition, the Defence Ministry has communicated its intent to open the development and integration of missiles to private players. This follows a recognition that public sector heavyweights like Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL), both DRDO-linked entities, currently dominate conventional missile production. DRDO’s portfolio includes air-defense and air-to-ground systems such as the Akash, Astra, and various anti-tank and naval missiles, alongside torpedoes. The new approach would enable private firms to contribute to and accelerate the creation of conventional missiles, addressing shortfalls in meeting Indian armed forces’ demand.
Experts note that the security environment in the region—illustrated by incidents during Operation Sindoor and broader regional tensions—has accelerated calls for more stand-off weapons and enhanced long-range capabilities. The government is seen as prioritizing conventional missiles such as BrahMos, Nirbay, Pralay, and Shaurya, with the view that future battles are likely to rely on long-range precision and anti-missile defenses rather than near-term air superiority alone.
Strategic rationale: supply security and global context
The policy shift is framed around ensuring that India’s armed forces do not face shortages of ammunition during prolonged conflict or in scenarios requiring rapid mobilization. With current global disruptions—such as Russia’s war in Ukraine and ongoing tensions in the Middle East—defense procurement has become more complex, pushing New Delhi to fortify domestic production and reduce dependence on imports for critical munitions.
Officials emphasize that expanding private sector participation does not undercut the role of DRDO in strategic research and high-end missile technology. Rather, it aims to supplement state capacity by leveraging private sector efficiencies, supply chain innovation, and capital. The government’s position is that while strategic missile development will remain under exclusive DRDO oversight to safeguard national security, private firms will be integral to the broader ecosystem required to meet day-to-day and surge demand.
Implications for industry and defense partners
Industry observers expect to see a surge of private investment in defense manufacturing, with potential partnerships between small and medium enterprises and larger defense contractors. A more diverse supplier base could lead to shorter procurement timelines, lower costs, and enhanced resilience. However, the move may also invite scrutiny on export controls, quality assurance, and adherence to national security norms as private players enter areas once dominated by state-owned enterprises.
Conclusion: a new phase in India’s defense industrial policy
India’s decision to open both missiles development and ammunition production to the private sector marks a watershed in its defense industrial policy. By strengthening domestic capabilities, the government aims to safeguard strategic autonomy and ensure readiness for extended conflict scenarios. While the full impact will unfold over the coming years, the shift signals a recalibration of the defense ecosystem toward greater private sector participation within a robust, security-conscious framework.
