India’s Ministry of Defence has decisively ended Bharat Dynamics Limited’s monopoly in tactical missile production, opening the sector to private firms under the Defence Acquisition Procedure (DAP) 2026.

This marks a major structural reform, distributing DRDO’s missile programs among both public and private industry to accelerate development and strengthen self-reliance.

The Ministry of Defence has taken a landmark step by opening indigenous tactical missile production to private companies, following its earlier decision to end Hindustan Aeronautics Limited’s monopoly in aerospace manufacturing.

This reform is designed to create a level playing field for industry and meet the growing demand from the armed forces.

The Defence Research & Development Organisation has distributed between ten and twelve tactical missile development projects among public and private companies based on their capabilities, moving away from the earlier reliance on Bharat Dynamics Limited as the sole production partner.

This policy shift aligns with the proposed Defence Acquisition Procedure 2026, which seeks to build an ecosystem that fulfils India’s aspirations of self-reliance in advanced weaponry. Tactical missiles, which are short-to-medium-range guided weapons carrying conventional warheads, have become central to modern warfare.

Unlike strategic missiles designed for intercontinental strikes, tactical missiles are intended for precision attacks against localised enemy forces, infrastructure, and assets. The reform is also seen as a prelude to discussions within the armed forces about raising a dedicated rocket force, similar to those established by China and Pakistan, to provide coordinated responses against aerial threats.

At least four private defence companies—Adani Defence & Aerospace, Bharat Forge, ICOMM, and Solar Defence and Aerospace Limited—have been selected as Development-cum-Production Partners to complete DRDO’s tactical missile programs within three to five years.

Under the DcPP model, DRDO collaborates with a selected industry partner to co-develop a functional system or prototype, followed by design completion, trials, and evaluations, before orders are placed by the armed forces.

Alongside these private firms, Bharat Dynamics Limited and Bharat Electronics Limited have also been contracted for the same missile projects. In some programs, BDL is partnering with private companies, reflecting a hybrid model of cooperation rather than exclusion.

Among the projects involving private industry are the Naval Anti-Ship Missile – Short Range, India’s first indigenous helicopter-launched anti-ship missile, and the Rudram series of supersonic and hypersonic air-to-surface ground attack and anti-radiation missiles.

Other collaborations include the Very Short-Range Air Defence System, a fourth-generation man-portable air-defence system, the Long-Range Glide Bomb, a 1,000 kg class air-to-ground smart weapon, and the UAV-Launched Precision Guided Missile (ULPGM-V3). These projects highlight the breadth of private participation across multiple missile categories.

The Pralay missile, which successfully underwent user evaluation trials in December 2025, demonstrated precision strike capability at ranges between 150 and 500 kilometres.

Both BDL and BEL are jointly participating in its production, underscoring the continued role of public sector undertakings in partnership with private firms. Industry sources note that recent global conflicts, particularly the ongoing US-Israel-Iran war, have raised the profile of tactical missiles in modern warfare. India’s armed forces, previously reliant on imports for such systems, are now seeking home-grown solutions to ensure operational independence.

Beyond tactical missiles, the Ministry of Defence is also contemplating opening ballistic missile manufacturing to the private sector. Defence Secretary Rajesh Kumar Singh recently stated that the time has come to involve private industry in ballistic missile production, signalling a broader transformation of India’s defence industrial base.

This expansion would mark a significant departure from past policy, where strategic missile projects were tightly controlled by DRDO and DPSUs.

The decentralisation of missile production represents a profound shift in India’s defence manufacturing landscape.

By involving private industry in projects that were once the exclusive domain of public sector undertakings, the government aims to accelerate development cycles, enhance innovation, and build a resilient ecosystem capable of meeting the demands of modern warfare.

It also reflects India’s determination to achieve Atmanirbhar Bharat in defence, ensuring that critical capabilities are developed indigenously and not dependent on external suppliers.

Agencies