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Home » Defence Ministry Opens Missile and Ammunition Production to Private Sector

Indian Defence News

Defence Ministry Opens Missile and Ammunition Production to Private Sector

Private Sector to Drive Indiaโ€™s Missile and Ammunition Production, Boosting Atmanirbhar Bharat and Long-Term Defence Readiness.

By Adhidev Jasrotia
Last updated: October 5, 2025
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In a landmark move to bolster Indiaโ€™s long-term defence preparedness, the Ministry of Defence has opened the development and manufacturing of missiles, artillery shells, ammunition, and ordnance to private sector players. This decision aims to ensure that the Indian Armed Forces remain fully stocked during prolonged hostilities while promoting Atmanirbhar Bharat in the defence sector.

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Officials close to the matter told Hindustan Times that the move follows lessons from Operation Sindoor, which underscored the strategic importance of stand-off weapons and long-range conventional missiles. The amendment to the Revenue Procurement Manual (RPM) removes the mandatory requirement for private firms to seek a no-objection certificate (NOC) from state-owned Munitions India Limited (MIL) before setting up ammunition production units.

Under the new framework, private manufacturers can now produce 105 mm, 130 mm, and 150 mm artillery shells, Pinaka missiles, 1,000-pound bombs, mortar bombs, hand grenades, and medium- and small-calibre ammunition. In addition, the Defence Ministry has conveyed to DRDO its intent to allow private participation in missile development and integration, citing that existing state-owned firms like Bharat Dynamics Limited (BDL) cannot fully meet the Indian Armed Forcesโ€™ growing requirements.

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Experts note that Pakistanโ€™s use of long-range Chinese air-to-air and air-to-surface missiles during Operation Sindoor demonstrated the need for India to develop additional conventional missile capabilities such as BrahMos, Nirbhay, Pralay, and Shaurya. The move is expected to complement DRDOโ€™s strategic missile programs, while private industry focuses on conventional weapons.

The step also mitigates risks of ammunition shortages during prolonged conflicts and reduces dependence on foreign suppliers amid high global demand caused by ongoing conflicts in Ukraine and the Middle East. Defence analysts see this as a pivotal decision to enhance Indiaโ€™s self-reliance, strengthen its deterrence capabilities, and accelerate domestic innovation in critical defence technologies.

This reform marks a significant shift in Indiaโ€™s defence manufacturing policy, opening new avenues for private industry to contribute to national security and ensuring that the armed forces remain ready for future high-intensity conflicts.

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ByAdhidev Jasrotia
An expert in Indian defence affairs, military recruitment, and geopolitical strategy, brings a strong foundation in national security journalism. Recommended for the Indian Army with All India Rank 138.
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