India is on the verge of a landmark shift in defence manufacturing. In a move that could reshape the country’s strategic weapons ecosystem, the Centre is preparing to allow private companies to manufacture indigenous missiles, with the DRDO-developed Astra Mark-2 expected to become the first programme under the new framework.
According to a Moneycontrol report, the Defence Ministry is expected to invite bids from private firms to produce the beyond-visual-range air-to-air missile, signalling a significant expansion of private-sector participation in one of India’s most tightly controlled defence segments.
Astra Mk-2 to lead the transition
The Astra Mark-2, developed by the Defence Research and Development Organisation (DRDO), is expected to be the first missile manufactured by private industry under the proposed policy. With a strike range of more than 180 km, the missile is designed to engage enemy aircraft well beyond visual range, giving the Indian Air Force a significant boost in aerial combat capability.
The missile is slated for integration with frontline platforms such as the Sukhoi Su-30MKI and the upcoming Tejas Mk-2 fighter aircraft.
Defence Ministry to invite bids
The Defence Ministry is expected to issue a Request for Proposal (RFP), allowing eligible private defence companies to compete for missile production. The move is aimed at expanding manufacturing capacity beyond public-sector units while building a stronger domestic industrial base for advanced weapon systems.
If successful, the model could be extended to other indigenous missile programmes in the future.
Export ambitions gain momentum
The policy comes as demand for Indian-made defence systems continues to grow globally. Indonesia has expressed interest in acquiring the Astra missile alongside the BrahMos supersonic cruise missile, highlighting India’s emergence as a credible defence exporter.
Greater private-sector participation is expected to help India scale up production to meet both domestic military requirements and overseas demand.
Opening missile manufacturing to private companies marks a significant policy shift for India’s defence sector, which has traditionally relied on government-owned production agencies for strategic weapons.
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