After ending the monopoly of maharatna Central Public Sector Enterprise (CPSE) Hindustan Aeronautics Ltd (HAL) in aerospace manufacturing, the Ministry of Defence (MoD) has opened indigenous tactical missile production to private companies to offer a level playing field for the industry and meet their growing demand from armed forces.
Defence Research & Development Organisation’s (DRDO’s) 10 to 12 tactical missile development projects have been distributed among public as well as private companies on the basis of their capabilities, moving away from earlier practice of heavily relying on defence PSU Bharat Dynamics Ltd as the production partner.
This also comes to meet the requirements of proposed Defence Acquisition Procedure (DAP) 2026 and create an ecosystem to fulfil aspirations of self reliance in this emerging theatre of firepower which has become central to modern warfare, fundamentally altering how conflicts are fought. It’s also a prelude to a discussion within the armed forces for raising a rocket force for a coordinated response against aerial threats as some countries, including China and Pakistan, have established.
Tactical missiles are short-to-medium-range guided weapons, which carry conventional warheads and are designed for use within a specific theater of military operations. Unlike strategic missiles — built to move across continents to destroy massive targets like cities or entire military bases — tactical missiles focus on high-precision strikes against localised enemy forces, infrastructure and assets.
Decentralisation efforts
At least four private defence companies – Adani Defence & Aerospace, Bharat Forge, ICOMM and Solar Defence and Aerospace Ltd – have been selected as Development-cum-Production Partners (DcPPs) to complete different DRDO tactical missiles programmes between three and five years. Under the DcPP model, introduced to reduce development cycle, the DRDO and a selected private or public industry partner co-develop a functional system or prototype for completing subsequent design, trials, and evaluations. After that follows orders from armed forces.
Besides them, BDL (Bharat Dynamics Ltd) and BEL (Bharat Electronics Ltd) too have been contracted for the same missile projects. Pralay, which underwent user evaluation trials towards the end of December 2025 demonstrating capability of hitting targets with precision between a range of 150 and 500 km, both the PSUs are jointly participating in the production. In a couple of other programmes, BDL is partnering with private companies.
Some of the projects private industry is collaborating for are: Naval Anti-Ship Missile – Short Range (NASM-SR), which is the first indigenous helicopter-launched anti-ship missile; and Rudram I,II and III series of supersonic and hypersonic air-to-surface (ASM) ground attack and anti-radiation missiles.
Similarly, other private participation projects include Very Short-Range Air Defence System (VSHORADS), a fourth-generation Man-Portable Air-Defence System (MANPAD), Long-Range Glide Bomb (LRGB), which is 1,000 kg class air-to-ground smart weapon, and UAV-Launched Precision Guided Missile (ULPGM-V3).
With recent global conflicts, especially the ongoing US-Israel-Iran war, raising the profile of tactical missiles in the modern warfare, armed forces previously content with imports of such vectors, are seeking home-grown solutions, said industry sources.
Beyond tactical missiles, the Ministry of Defence is also contemplating roping in private sector for ballistic missile manufacturing as well. Last month, Defence Secretary Rajesh Kumar Singh had said at a CII function that the time has come to open up ballistic missile manufacturing to the private sector.