<h3 data-start="744" data-end="784">Private Missiles, Public Might</h3>
In a landmark decision that could redefine India&rsquo;s defence landscape, the Ministry of Defence (MoD) has quietly opened the doors for the private sector to enter one of the country&rsquo;s most restricted domains &mdash; the manufacture of missiles, artillery shells, and ammunition.
This bold shift removes the long-standing barrier that forced private firms to seek a no-objection certificate from Munitions <a title="India Defence" href="https://www.benefitnews24.com/defence/india-s-s-400-gamble-reshapes-defence/19696" target="_blank" rel="noopener">India</a> Limited (MIL). The change means private players can now roll out everything from 105 mm artillery shells to Pinaka rockets, mortar bombs, and even air-delivered munitions, marking a new phase in India&rsquo;s defence industrial ecosystem.
For decades, defence manufacturing was the exclusive domain of state-run ordnance factories, a legacy of British India. But with the global defence market now worth over $600 billion annually, India's new policy could unleash private innovation, create export-ready products, and elevate its defence export share far beyond the current ₹21,000 crore mark.
This policy shift, embedded through an amendment in the Revenue Procurement Manual (RPM), removes the decades-old requirement that forced private firms to seek a no-objection certificate (NOC) from Munitions India Limited (MIL)before setting up any ammunition unit. What appears on paper as a bureaucratic change is, in fact, a transformational move &mdash; one that could redefine the very foundation of India&rsquo;s defence industrial complex.
<h3 data-start="1530" data-end="1566">ALSO READ: https://www.benefitnews24.com/defence/india-philippines-seal-strategic-defence-pact/17458</h3>
<h3 data-start="1530" data-end="1566">Breaking the Public Monopoly</h3>
Since Independence, defence production in India has been dominated by the state &mdash; a structure inherited from the British, who had established ordnance factories to arm their colonial army. When India became independent in 1947, it inherited 18 such factories. Over the next few decades, as India fought wars with Pakistan and China, successive governments expanded this network, taking the number of ordnance factories to 41 by 2021.
These factories &mdash; producing arms, ammunition, vehicles, and equipment &mdash; were reorganised into seven Defence Public Sector Undertakings (DPSUs). While they served national needs, inefficiencies, limited innovation, and bureaucratic red tape slowed production. Private players, restricted to subcontracts or component-level manufacturing, remained on the margins of India&rsquo;s defence ecosystem.
That is now changing. The new policy allows private firms to manufacture 105 mm, 130 mm, and 150 mm artillery shells, Pinaka multi-barrel rockets, 1,000-pound bombs, hand grenades, and medium and small calibre ammunition. For a country aspiring to become a global defence exporter, this is a logical and long-overdue step.
<h3 data-start="2762" data-end="2809">From Self-Reliance to Global Competitor</h3>
India&rsquo;s push for Atmanirbharta (self-reliance) in defence has been both a strategic and economic necessity. With the Defence Production and Export Promotion Policy (DPEPP) 2020, the government set an ambitious target &mdash; a turnover of ₹1.75 lakh crore in aerospace and defence manufacturing, including ₹35,000 crore in exports by 2025.
Since 2014, India&rsquo;s defence production has surged by over 170 per cent, reaching ₹1.27 lakh crore in FY 2023&ndash;24. In the same year, 92 per cent of defence contracts &mdash; worth over ₹2 lakh crore &mdash; were awarded to domestic industries.
Defence exports tell an even more striking story. From a modest ₹900 crore in 2013&ndash;14, India&rsquo;s exports touched a record ₹21,083 crore in FY 2023&ndash;24, a thirty-fold increase in a decade. Today, Indian-made defence products &mdash; from radars and coastal surveillance systems to armoured vehicles and missiles &mdash; are being supplied to over 100 countries.
<h3 data-start="3763" data-end="3806">Private Innovation, Public Security</h3>
The entry of the private sector in missile and ammunition manufacturing could accelerate innovation, reduce costs, and expand capacity &mdash; key factors in modern warfare readiness.
Unlike public entities, private firms are driven by efficiency, competition, and rapid adoption of technology. They are also more open to collaborations and joint ventures with global manufacturers, something public entities have traditionally struggled with.
If India&rsquo;s private sector can replicate its success in space (with ISRO&rsquo;s private partnerships) and aviation (with HAL&rsquo;s vendor ecosystem), it could build a sustainable and self-reliant munitions supply chain. This would ensure that, in the event of long-drawn conflicts, India does not face shortages of critical ammunition &mdash; a scenario that has historically worried military planners.
Moreover, as conflicts become increasingly technology-driven, the ability to produce smart munitions, precision-guided missiles, and AI-enabled command systems domestically will become decisive. The private sector can fill this gap through agile research and rapid prototyping.
<h3 data-start="4968" data-end="4998">Learning from the Past</h3>
India&rsquo;s dependence on imports for advanced weaponry has long been a strategic vulnerability. From fighter jets to basic ammunition, reliance on foreign suppliers often meant delayed deliveries and inflated costs.
For example, during the Kargil conflict in 1999, India faced shortages in critical artillery shells and had to make emergency imports. Two decades later, during the 2020 Ladakh standoff, India had to procure emergency spares from abroad again.
This dependency not only strains finances but also limits strategic autonomy during crises. By opening up the missile and ammunition sectors, the government is signalling its intent to build domestic depth &mdash; an ecosystem that can sustain both peace-time production and wartime surge capacity.
<h3 data-start="5776" data-end="5820">Defence Giants and Private Potential</h3>
India&rsquo;s state-run giants continue to play a pivotal role. Hindustan Aeronautics Limited (HAL) drives the aviation segment with the Tejas Light Combat Aircraft and Dhruv Advanced Light Helicopter. Bharat Electronics Limited (BEL) has evolved into a leader in radar and electronic warfare systems, recently delivering its 7000th radar module for the Rafale aircraft.
Meanwhile, Mazagon Dock Shipbuilders Limited (MDL) has successfully built submarines under Project 75, strengthening India&rsquo;s maritime self-reliance.
But private firms like Larsen &amp; Toubro, Tata Advanced Systems, and Bharat Forge are now emerging as strong players. Their efficiency, scalability, and appetite for innovation complement the state-owned ecosystem. With the missile and ammunition sectors now open, India could see the rise of a new generation of defence startups &mdash; agile, export-oriented, and globally competitive.
<h3 data-start="6774" data-end="6819">Global Competition and the Road Ahead</h3>
The global defence export market is dominated by the United States, Russia, France, and China &mdash; nations with deep industrial ecosystems and aggressive export strategies. For India, entering this league will require not just policy reform, but also consistent quality, competitive pricing, and reliable delivery timelines.
India&rsquo;s BrahMos missile, jointly developed with Russia, has already proven its export potential &mdash; the Philippines became the first foreign buyer in 2023, and several ASEAN and Middle Eastern nations are now in talks.
The new BrahMos production line in Lucknow, capable of producing up to 150 missiles annually, reflects India&rsquo;s growing confidence in its domestic capabilities. If similar models are adopted across missile and ammunition manufacturing, India could soon position itself as a trusted supplier to friendly nations &mdash; especially those seeking alternatives to Russian or Western systems.
<h3 data-start="7779" data-end="7809">The Strategic Dividend</h3>
The deeper logic behind the government&rsquo;s move is not just economic but strategic. A strong domestic arms industry reduces vulnerability to foreign pressure, enhances wartime preparedness, and strengthens India&rsquo;s diplomatic leverage.
For the armed forces, it means faster delivery, customised solutions, and assured supply chains. For industry, it opens up a new trillion-rupee market. And for India&rsquo;s global posture, it projects the image of a nation that can defend itself &mdash; and equip others to do the same.
As one senior official remarked privately, this isn&rsquo;t just a reform &mdash; it&rsquo;s the industrial awakening of India&rsquo;s strategic might.
If India stays the course, the phrase &ldquo;Made in India&rdquo; may soon echo not just in the skies and seas, but across battlefields worldwide.

Private firms to make missiles, ammunition — India eyes global defence dominance

Private Missiles, Public Might

Private firms to make missiles, ammunition — India eyes global defence dominance

October 5, 2025 | 15:16 IST