Rajnath Singh at BEL’s Missile Factory.
DRDO transfers missile production technology to Indian defence companies: The Indian government has cleared a policy change allowing the transfer of technology for all conventional missile systems developed by the Defence Research and Development Organisation (DRDO) directly to the domestic defence industry. Announced on August 25, 2026, the decision aims to scale up local manufacturing, reduce reliance on foreign imports, and expand the country’s industrial base.
How the Transfer Works
Under this new framework, domestic companies can take over the production of DRDO-developed missile systems, provided they meet specific qualifications, regulatory guidelines, and certification requirements.
This policy shifts the burden of manufacturing from state-run research facilities to commercial industrial partners. The primary goals of this transition include:
Expanding Domestic Manufacturing: Enabling private companies and public enterprises to mass-produce advanced military hardware.
Involving Smaller Businesses: Creating opportunities for Micro, Small, and Medium Enterprises (MSMEs) to enter the defence supply chain.
Cutting Import Costs: Lowering India’s dependence on foreign military hardware by building systems locally.
Boosting Local Value Addition: Ensuring that a higher percentage of defence spending stays within the Indian economy.
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The Broader Impact on Defence
For years, India has been among the world’s largest defence importers. Policies targeting self-reliance, often referred to as Aatmanirbharta, seek to reverse this trend. By handing over proven missile designs to commercial manufacturers, the government hopes to accelerate production timelines and improve the operational readiness of the armed forces.
DRDO will continue to act as a partner, assisting companies with the technology transfer process and ensuring that industrial partners can absorb and apply the required engineering standards.
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