India plans private entry into missile manufacturing as demand for DRDO's Astra missile rises: Report

India is preparing to allow private companies to enter missile manufacturing, marking one of the most significant changes in its defence production policy, according to a report by Hindustan Times.

The move follows growing international interest in Indian-made missile systems, including Indonesia’s reported interest in acquiring the Defence Research and Development Organisation’s (DRDO) Astra missile, prompting the government to expand production capacity to meet rising domestic and export requirements.

Although private firms have already been permitted to participate in defence sectors such as aircraft manufacturing, drones, artillery systems and naval platforms, missile production has largely remained under the control of government-owned defence entities. Opening the missile segment to private players would represent a major transformation in India’s defence industrial landscape.

As per the report, the Defence Ministry is expected to issue a Request for Proposal (RFP) inviting private Indian companies to manufacture the Astra Mark 2 beyond-visual-range (BVR) air-to-air missile. Several major defence companies, including ICOMM, Adani, Bharat Forge, Tata Group and Mahindra Group, are likely to compete for the opportunity.

The decision comes amid increasing demand from India’s armed forces and friendly partner nations, which state-run Bharat Dynamics Ltd is currently unable to fulfil entirely due to capacity constraints.

Designed and developed by DRDO, the Astra Mark 2 is an advanced air-to-air missile with an estimated operational range of 180-200 kilometres. The missile was developed to counter threats such as China’s PL-15E long-range air-to-air missile, which has been supplied to Pakistan before Operation Sindoor. The Astra Mark 2 is expected to be integrated with fighter platforms including the Tejas Mark 1A, MiG-29, Su-30 MKI and Rafale Marine aircraft.

According to Hindustan Times, the Pralay tactical ballistic missile could become the next major missile system to be opened for private sector participation in both development and manufacturing.

The Pralay missile has an approximate range of 500 kilometres and is a two-stage weapon capable of travelling at speeds around six times the speed of sound. It is a key component of India’s Integrated Rocket Forces concept, which also includes systems such as the Long-Range Land Attack Cruise Missile (LRLACM), the next-generation BrahMos missile and the extended-range Pinaka rocket system.

The government’s decision has also been influenced by operational experiences from Operation Sindoor, which highlighted the increasing importance of precision-guided stand-off weapons. The Centre is now focusing on rapidly expanding India’s missile and rocket capabilities to enhance strategic deterrence while simultaneously strengthening the country’s missile defence network.

The recent Iran-US conflict has further underlined the importance of advanced missile systems and air defence technologies, demonstrating the potential impact of precision strikes on critical infrastructure, the report said.

Along with expanding missile manufacturing, India is accelerating efforts to strengthen its air defence capabilities. India and Israel are collaborating on the development of a long-range surface-to-air missile system for naval vessels. The country is also developing a layered anti-missile and anti-drone defence network to address threats ranging from Turkish-origin drones operated by Pakistan to long-range rockets and ballistic missile systems deployed by China’s People’s Liberation Army.

The report further stated that India is expected to receive its fifth S-400 air defence system from Russia in November. The government is also considering approval for the purchase of five additional S-400 systems. These advanced air defence units are likely to receive protection from Russia’s Pantsir system, designed to defend against kamikaze drones, rockets and other aerial threats.

The move to involve private companies in missile manufacturing is expected to increase production capacity, encourage innovation, reduce dependence on state-run facilities and strengthen India’s position as a defence exporter.