Aatmanirbhar Bharat Gets a Boost as India Opens Missile and Ammunition Manufacturing to Private Sector

In a significant step towards self-reliance in defence, the Indian Ministry of Defence has opened up the development and manufacturing of missiles, artillery shells, ammunition, and other ordnance to the private sector. This move is aimed at ensuring that India does not face a shortage of firepower in the event of prolonged conflict, and aligns with the government’s broader push for Aatmanirbharta (self-reliance).

Although the government has not officially announced the decision, sources have confirmed that an important amendment has been made to the Revenue Procurement Manual (RPM). This amendment removes the previous requirement for private companies to obtain a no-objection certificate (NOC) from the state-owned Munitions India Limited (MIL) before setting up ammunition production facilities.

With this change, private firms will now be allowed to manufacture key defence items such as 105 mm, 130 mm, and 150 mm artillery shells; Pinaka rockets; 1,000-pound bombs; mortar shells; hand grenades; and both medium- and small-calibre ammunition.

In addition to opening up ammunition manufacturing, the Defence Ministry has also reached out to the Defence Research and Development Organization (DRDO) to indicate its intent to involve the private sector in missile development and integration. Until now, this domain has largely been monopolized by public sector companies like Bharat Dynamics Limited (BDL), which alone cannot meet the growing demands of the Indian armed forces.

This policy shift comes in the wake of Operation Sindoor, which highlighted the importance of long-range conventional missiles and stand-off weapons in modern warfare. During the operation, Pakistan deployed Chinese-made long-range air-to-air and air-to-surface missiles, underscoring the need for India to expand its own missile capabilities.

Currently, DRDO-linked companies such as BDL and Bharat Electronics Limited (BEL) are the sole producers of critical missile systems including Akash, Astra, Konkurs, and Milan, as well as torpedoes. However, with future battles expected to rely heavily on precision-guided and long-range weaponry, the government now sees a greater role for private companies in conventional missile production—while retaining strategic missile development under DRDO’s control.

Experts note that missiles like BrahMos, Nirbhay, Pralay, and Shaurya will be essential in future warfare scenarios dominated by stand-off and anti-missile systems, rather than traditional air combat. One notable example of this shift occurred during Operation Sindoor on May 10, when India's S-400 air defence system reportedly shot down a Pakistani electronic surveillance aircraft—either a Saab AEW or Dassault DAC 20 ELINT—over 300 km inside Pakistani Punjab.

The opening of the missile and ammunition sectors to private companies also addresses another critical concern: ensuring adequate supply in the event of a long war. In recent global conflicts such as the Ukraine war and the ongoing hostilities in Gaza, the demand for missiles and ammunition has surged, making it difficult for countries to procure these supplies quickly and affordably. In contrast, Pakistan benefits from a steady supply of Chinese arms.

By involving the private sector, India aims to build a robust domestic defence manufacturing ecosystem that can meet wartime needs without over-reliance on foreign vendors.