DRDO seeks firms for missile and guided bomb systems, while India's new 405-item defence import ban signals a decisive shift towards domestic manufacturing. Together, these twin initiatives mark one of the strongest pushes yet to integrate private industry into the country's strategic weapons ecosystem. By inviting companies to co-develop advanced missile systems and creating a guaranteed domestic market for hundreds of defence components, New Delhi is attempting to transform India's defence industry from a largely state-driven model into a broader industrial partnership capable of meeting military requirements and boosting exports.
From State-Led Defence to Domestic Manufacturing Revolution
For decades, India's most critical defence platforms—including missiles, guided bombs and strategic weapon systems—were designed by the Defence Research and Development Organisation (DRDO) and manufactured primarily through Defence Public Sector Undertakings (DPSUs). While this framework produced landmark achievements such as indigenous missile programmes, it often struggled with production scale, delivery timelines and limited supplier diversification.
The government's Make in India and Atmanirbhar Bharat initiatives have gradually changed this approach by encouraging private-sector participation and introducing Positive Indigenisation Lists, which prohibit imports of selected defence items after specified deadlines, thereby creating assured demand for domestic manufacturers.
DRDO Invites Industry into Strategic Weapon Development
Under the new model, DRDO will continue leading design and technology development, while selected firms will participate in development, assembly, integration, testing and eventual production for the armed forces.
High Standards for Strategic Partners
The DcPP model comes with rigorous eligibility requirements aimed at ensuring only capable firms handle sensitive programmes.
Eligible companies must:
· Hold defence manufacturing and PESO licences.
· Have a minimum annual turnover of ₹100 crore.
· Maintain a net worth exceeding ₹34 crore.
· Show profitability in at least two of the last five years.
· Possess a credit rating of BBB or above.
Selected firms must also develop specialised infrastructure, including explosive storage facilities capable of handling at least five tonnes of RDX/TNT-class materials within a year of receiving production orders.
DRDO plans to shortlist at least two partners for each project, allowing them to jointly develop prototypes before competing for bulk production contracts ranging from 50 to 100 units.
405-Item Import Ban Creates Domestic Demand
Alongside DRDO's initiative, the Ministry of Defence has unveiled its sixth Positive Indigenisation List, covering 405 defence items under a phased import ban extending until 2029.
The list includes spare parts, components, subsystems and raw materials used across fighter aircraft, tanks, helicopters, satellite systems and other military platforms.
With an estimated business opportunity of around ₹3,070 crore, the measure seeks to ensure that maintenance, repair and future production increasingly rely on Indian manufacturers instead of foreign suppliers.
A Defining Test for India's Defence Self-Reliance
Taken together, these initiatives represent more than procurement reforms—they redefine how India's defence industry will evolve over the next decade. DRDO's partnership model embeds private firms into the full lifecycle of strategic weapons, while the 405-item import ban creates a predictable domestic market that encourages long-term investment. If supported by timely orders, robust supply chains and consistent quality standards, these measures could strengthen India's military preparedness, reduce import dependence and elevate the country as a competitive global exporter of advanced missile and precision-guided weapon systems.
(With agency inputs)
