Defence Minister Rajnath Singh approved transfer of DRDO-developed technologies for all conventional missile systems to Indian private industry. The move ends Bharat Dynamics Limited's long-standing monopoly on missile production. Private firms can now become prime integrators, not just component suppliers. The decision covers surface-to-air, air-to-air, anti-radiation, antitank, and land-attack cruise missiles. It aims to accelerate mass production, deepen Atmanirbhar Bharat in defence, and build magazine depth against adversaries China and Pakistan.

This decision represents a structural shift in India's defence industrial architecture. Previously, DRDO developed missile technologies and transferred them exclusively to state-owned enterprises — primarily Bharat Dynamics Limited (BDL) — for production. Private firms participated only as Tier-2 or Tier-3 component suppliers. The new policy elevates private companies to prime integrators, meaning they can now own the full production line.

The policy sits within the broader Atmanirbhar Bharat framework launched in 2020, which introduced positive indigenisation lists — categories of defence equipment that cannot be imported — and raised FDI limits in defence manufacturing to 74% under the automatic route and 100% via government route.

The strategic logic is driven by three lessons: (1) modern wars consume munitions at rates that peacetime stockpiles cannot sustain, as seen in Ukraine; (2) adversaries use precision strikes to degrade inventory; (3) deterring China requires demonstrated capacity for sustained attrition warfare. A tri-services conventional missile force is being created, requiring industrial-scale production beyond what BDL alone can supply.

Key missiles in India's arsenal include BrahMos (range: 500 km, co-developed with Russia), Agni-V (ICBM, range: 5,500 km), Prithvi-I (150 km), and Agni-IV (4,000 km). India's defence exports rose from ₹600 crore in 2014–15 to approximately ₹33,000 crore (~$4 billion) by 2025–26.

For UPSC, note the institutional actors: DRDO (technology development), BDL (production, now losing monopoly), MSME supply chain (new entrants), and DDP (Department of Defence Production) as the regulatory body.