Why India is sharing missile secrets with its private sector

India has taken a major step towards opening one of its most sensitive areas of defence production to private firms.

Key points

• India has dramatically ramped up its military exports over recent years, from just $72m in 2014-15 – when Modi came to power – to $4bn in 2025-2016.
• As well as startups, more than 600 firms were involved in India's drone industry, including major groups such as Adani, Larsen & Toubro, and Tata Advanced Systems.
• The announcement spans a broad set of missiles, remarked Aditya Ramanathan, a research fellow with the Bengaluru-based Takshashila Institution.
• India's Defence Ministry remarked Singh had approved the transfer of DRDO-developed technology for all conventional missile systems to Indian defence businesses for production inside the country.
• While India largely relies on domestically created missiles, it additionally imports missiles – especially from Russia and Israel, two key weapons suppliers to the country.

Defence Minister Rajnath Singh approved the transfer of technologies developed by the state-run Defence Research and Development Organisation (DRDO) for all conventional missile systems to Indian industry for domestic production, the country's Ministry of Defence remarked on Tuesday.

For context, the move marks a significant shift for the sector dominated by government-run firms and research laboratories. Private firms will be able to compete for the technology and production rights, subject to technical qualifications, certifications and other regulatory requirements, the ministry stated.

In practice, the Narendra Modi-led administration states the aim is to move missiles from development into mass production faster, growth domestic manufacturing and reduce India's dependence on imports.

So, does India's private defence industry have the capacity to manufacture sophisticated missile systems at the scale and reliability the military needs, is the country moving towards developing its own military-industrial complex, and are there security risks involved? What did the administration announce?

"The objective is to enhance domestic manufacturing capabilities, strengthen the defence industrial base, and create opportunities for the participation of Indian MSMEs (micro, small and medium-sized enterprises) and other technology partners in the supply chain, " the ministry remarked in an official note.

In practice, the measure would enable the "successful transition of missile system development to industrial production" and create opportunities for MSMEs and other technology partners, the ministry continued.

"DRDO remains committed to working closely with Indian industry to facilitate the transfer and absorption of advanced defence technologies and to further strengthen the country's indigenous defence capabilities."

Meanwhile, the announcement spans a broad set of missiles, remarked Aditya Ramanathan, a research fellow with the Bengaluru-based Takshashila Institution.

"It will include surface-to-air missiles, air-to-air missiles, anti-radiation missiles, antitank systems, and so on. It will additionally include more heavy-duty hardware like land-attack cruise missiles, " he informed Al Jazeera. Why is India doing this?

India has traditionally relied heavily on state-owned defence firms to turn weapons developed by DRDO into large-scale production. Bharat Dynamics, one such state-owned firm, has long held a monopoly in missile production.

Tuesday's announcement is a "big change" since it ends that monopoly, stated Ramanathan.

"Private companies have been making missile components for years, but what this decision does is allow them to move up the value chain and become prime integrators for these systems, " he remarked.

But under Modi, India has attempted to both encourage self-reliance in defence – a concept that the administration calls Atmanirbhar Bharat or self-reliant India – and prod foreign defence majors to manufacture in India.

At a time when geopolitical allegiances are changing fast, and India faces uncertainties on both major borders – with rivals Pakistan and China – the country under Modi has more than doubled its defence budget, from $38bn in 2014 to $86bn in the current financial year.

Meanwhile, the brief four-day conflict with nuclear-armed rival and neighbour Pakistan last year has injected fresh urgency into India's defence preparedness intends. This year's defence budget is 16 percent higher than the previous year's. Other geopolitical events have forced the government's hand too, suggested Ramanathan.

"I don't think this move would have happened as shortly as it did if not for the experience of recent wars. Indian decision-makers have been looking at Ukraine, they've been looking at the US war with Iran, and of course they've been imbibing the lessons of operations from last year, " he remarked.

As we've seen lately, you're going to burn through your inventory pretty rapidly, "One reason you're going to need sizeable stockpiles is that. The other reason is that your adversary could additionally degrade your stockpiles using their own precision-strike systems." China, he stated, was a major factor in India's calculations.

"India believes that to deter China, which is its most capable adversary, it will need to demonstrate that it can both inflict and absorb really punishing attrition over weeks of gruelling warfare, " Ramanathan remarked.

To that end, India is additionally creating a tri-services conventional missile force. "To be a viable and effective force, it's going to require serious magazine depth, and this cannot be achieved without the active involvement of the private sector, " he continued. What is India's defence industry already manufacturing?

In June, India confirmed that it was preparing to spend more than $2bn on military drones from domestic manufacturers, reflecting the rapid expansion of the country's private defence industry.

In July, India additionally approved the purchase of a range of military equipment for its defence forces worth $5.46bn, including missiles, electronic warfare systems and Kamikaze drones.

India is additionally pushing to rapidly modernise its navy with an eye on Beijing's growing influence in key Indian Ocean shipping lanes. In December, New Delhi confirmed aims to procure at least 75 ships and submarines, with most projected to be constructed domestically.

Meanwhile, India is trying to diversify the foreign sources of its weapons. Over the past decade, New Delhi has worked to move away from its longstanding reliance on Russia for military hardware, expanding defence ties with countries such as the United States, France and – increasingly – Israel. Does the private sector have the capacity to build missiles?

Private arms manufacturers in India have been increasing spending on bolstering military production previously few years.

Major conglomerates have invested heavily in ammunition, drones, aerospace and military electronics. Of late, they have began to invest in facilities that aim to manufacture missiles.

Adani Defence & Aerospace, owned by business tycoon Gautam Adani, a close associate of Indian Prime Minister Modi, confirmed aims in 2024 to invest more than 30 billion rupees ($315m) in ammunition and missile manufacturing facilities in Uttar Pradesh.

For context, the facilities would include capabilities for handling explosives applied in missiles and precision munitions. But commitments and intent don't build missiles.

"Ultimately, I think the success or failure of this move will depend on how the Indian government places orders, " Ramanathan remarked. "Making missiles is an incredibly complex and costly affair, and firms are going to have to invest a lot in infrastructure, technology and residents. These sorts of investments will only pay off if the administration places substantial enough orders to justify them and additionally, hopefully, leave these businesses with some profits that they can pour back into research and development." What missiles does India have?

India has a range of cruise and ballistic missiles, a number of of which are additionally capable of carrying nuclear warheads.

In May, on the anniversary of the 2025 war with Pakistan, India successfully test-fired the Agni-V, its most advanced nuclear-capable intercontinental ballistic missile that can reach a distance of 5, 500km (3, 418 miles) – a range that covers all of China, the Middle East and even parts of Europe.

Its other ballistic missiles have ranges from as little as the Prithvi-1 (150km or 93 miles) to the Agni-IV (4, 000km or 2, 485 miles), again covering everything from border skirmishes with Pakistan to India's extended neighbourhood.

It additionally has powerful cruise missiles, like the BrahMos, co-developed with Russia. It has a range of up to 500km (311 miles), and was employed in last year's war with Pakistan. Is India additionally exporting missiles and other weapons?

Paras Defence, one of India's fast-growing defence manufacturers, remarked this month it expects its exports to more than double in the 2026-27 financial year, up to $14m, driven partly by climbed demand linked to conflicts in the Middle East.

Indian arms makers have additionally been involved in joint ventures with businesses abroad. Adani Defence, in partnership with Elbit Systems – Israel's largest weapons manufacturer – produces the sizeable Hermes 900 armed drone systems.

Notably, a 2024 investigation by Al Jazeera exposed how India was exporting rocket parts and ammunition to Israel, even as the Modi administration was publicly calling for diplomacy to end the war on Gaza.

For now, why India is sharing missile secrets with its private sector remains the part of the story worth watching, and further updates are likely as more details are confirmed.