India has initiated a historic defence manufacturing reform by opening missile production to private firms, with the DRDO-developed ASTRA MK-2 set to be the first program under this framework, various news agencies reported. 

The move aims to expand production capacity, meet rising domestic and export demand, and position India as a major global defence exporter.

The ASTRA MK-2 missile, designed by the Defence Research and Development Organisation, will spearhead this transition. With a strike range of more than 180–200 kilometres, it is capable of engaging enemy aircraft well beyond visual range, significantly enhancing the Indian Air Force’s aerial combat capabilities.

The missile is slated for integration with frontline fighter platforms including the Sukhoi Su-30MKI, MiG-29, TEJAS MK-1A and MK-2, and the Rafale Marine, making its timely production a critical priority.

The Defence Ministry is expected to issue a Request for Proposal inviting bids from leading private defence companies such as TATA Group, Adani Defence, Mahindra Group, Bharat Forge, and ICOMM. 

This will allow private industry to compete for the production of ASTRA MK-2, breaking the long-standing monopoly of Bharat Dynamics Limited, which has struggled to meet the growing demands of the armed forces and export clients.

The policy shift follows similar reforms in aircraft, drones, artillery, and naval platforms, but missile production has until now remained under strict government control due to its strategic sensitivity.

The decision comes against the backdrop of rising global interest in Indian-made missile systems. Indonesia has already expressed intent to procure Astra missiles alongside the BrahMos supersonic cruise missile, underscoring India’s growing credibility as a defence exporter.

The government hopes that private-sector participation will help scale up production to meet both domestic requirements and overseas demand, thereby strengthening India’s position in the global arms market.

The ASTRA MK-2 program is also strategically significant. It was developed to counter China’s PL-15E long-range air-to-air missile, which was supplied to Pakistan ahead of Operation Sindoor, highlighting the need for indigenous stand-off precision weapons.

By involving private firms, India seeks to accelerate production, reduce bottlenecks, and ensure preparedness against regional threats. Supporters argue that this will also encourage investment in advanced manufacturing, create skilled jobs, and reinforce the Make in India initiative.

Beyond ASTRA MK-2, the government is considering extending the model to other indigenous missile programs. The Pralay tactical ballistic missile, with a range of 500 kilometres and capable of travelling at six times the speed of sound, is expected to be the next system opened to private industry. 

Pralay forms part of India’s Integrated Rocket Forces, alongside the Long-Range Land Attack Cruise Missile, next-generation BrahMos, and extended-range Pinaka systems, all of which are critical to India’s evolving deterrence posture.

While the reform promises efficiency and competitiveness, it also raises concerns. Missile manufacturing involves highly sensitive technologies, requiring strict government oversight, cybersecurity safeguards, and rigorous quality control. Defence experts caution that protecting classified information and ensuring consistent standards across multiple private firms will be essential to avoid risks to national security.

This landmark policy shift reflects India’s determination to transform its defence industrial base, reduce reliance on imports, and project power across the Indo-Pacific.

By opening missile production to private firms, India is signalling confidence in its domestic industry’s ability to deliver advanced strategic weapons at scale, while simultaneously strengthening its export ambitions.

Agencies