Government allows Indian firms to manufacture DRDO missile systems

Defence Minister Rajnath Singh has authorized a major policy shift allowing the Defence Research and Development Organisation to share conventional missile technology with domestic companies. This decision aims to accelerate the transition of advanced weapon systems from lab development to full industrial-scale production across India. Qualified local manufacturers, including micro, small, and medium enterprises, can now build these complex systems directly subject to strict regulatory certifications.

Earlier, India relied heavily on foreign suppliers for critical military hardware, but recent initiatives rapidly reverse this trend by equipping local partners with high-end capabilities. Sharing advanced missile blueprints directly supports the national goal of self-reliance in military infrastructure. Officials expect this strategic move to significantly reduce import dependency while expanding domestic value addition within the broader supply chain.

Driving Growth in Military Manufacturing

Recent government data highlights a steady surge in indigenous defence production. Military manufacturing output jumped 15.6 percent during the 2024-25 financial year, reflecting a 110 percent increase since 2020. This growth aligns with other immediate steps, such as the defence ministry notifying the sixth positive indigenisation list last week. That specific list restricts imports on 405 strategically important military items, which carry an estimated business potential of Rs 3,070 crore for local vendors.

Economic Impact and Import Reduction

Domestic businesses have already made significant strides in replacing imported hardware over recent years. Over the last five years, Indian firms successfully indigenised more than 15,700 military components and items. This rapid shift has resulted in an estimated import substitution value of approximately Rs 9,000 crore. Providing local enterprises with direct access to sophisticated missile technology will further accelerate this economic momentum. DRDO will actively collaborate with domestic businesses to ensure smooth technical absorption of these systems. By combining deep scientific research with private sector manufacturing capacity, the government intends to build a self-sustaining defense ecosystem.