New Delhi: In a significant step towards defence self-reliance, the Ministry of Defence has allowed private companies to develop and manufacture missiles, artillery shells, and ammunition—sectors that were until now dominated by state-owned enterprises. 

The move is aimed at ensuring that India maintains sufficient firepower during prolonged hostilities and aligns with the government’s Aatmanirbhar Bharat vision.

According to officials familiar with the matter, an amendment has been made to the Revenue Procurement Manual (RPM) to remove the earlier requirement for private manufacturers to obtain a no-objection certificate (NOC) from Munitions India Limited (MIL) before setting up ammunition production facilities.

This change effectively opens up production of 105 mm, 130 mm, and 150 mm artillery shells, Pinaka rockets, 1,000-pound bombs, mortar rounds, hand grenades, and small- and medium-calibre ammunition to the private sector.

Sources also confirmed that the Defence Ministry has written to the Defence Research and Development Organisation (DRDO), signalling its intent to involve private firms in missile development and integration.

Currently, Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL) handle most of India’s missile systems, including the Akash, Astra, Konkurs, Milan, and various torpedoes.

The decision comes in the wake of Operation Sindoor, which underscored the growing importance of long-range, stand-off precision weapons in modern warfare.

During the conflict, Pakistan deployed Chinese-origin long-range air-to-air and surface-to-air missiles, prompting the Indian government to recognise the need to expand domestic capacity for conventional missile systems.

Officials said the new policy will allow private players to collaborate with DRDO and defence public sector units to build next-generation conventional missiles such as BrahMos, Nirbhay, Pralay, and Shaurya—while strategic missile projects will remain under DRDO’s exclusive control.

Experts note that the era of close-range aerial combat is fast fading, with future conflicts expected to rely heavily on stand-off missile systems, anti-missile defence, and beyond-visual-range weapons.

This was evident when India’s S-400 air defence system reportedly downed a Pakistani electronic intelligence aircraft more than 300 kilometres inside Punjab province on May 10, at the height of Operation Sindoor.

The Defence Ministry’s decision is also driven by pragmatic concerns. In the event of a prolonged war, India’s armed forces cannot afford to run low on ammunition and be forced to import supplies at premium costs.

The global defence supply chain has already been strained by ongoing conflicts in Ukraine, Gaza, and the Middle East, pushing up demand and prices for critical military hardware.

While Pakistan continues to rely on China as a steady supplier of missiles and munitions, India’s move aims to ensure sustained domestic capacity — securing both readiness and resilience in the long term.