India’s Defence Minister Rajnath Singh has approved the transfer of technologies (ToT) for all conventional missile systems developed by the Defence Research and Development Organisation (DRDO) to Indian defence firms for domestic production.
In a statement on 25 August, the Ministry of Defence said the decision will allow Indian businesses, including micro, small and medium enterprises (MSMEs), to manufacture missile systems domestically, provided they meet relevant regulatory qualifications and certifications.
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The move is intended to shift missile system development into large-scale industrial production, making use of the expertise and capacity of Indian industry for the manufacture of advanced defence systems.
In addition, the initiative seeks to improve operational readiness, decrease reliance on imports and increase the domestic content in defence production.
GlobalData’s Aerospace, Defense & Security Intelligence Center Senior Defence Analyst Fox Walker said that the technology transfer could have significant implications for India’s defence sector overall and its export ambitions.
Walker added: “The DRDO’s transfer of technology represents an important step in India’s progress toward self-sufficiency for defence matters and demonstrates India’s commitment to public-private partnership. It will be particularly interesting to see the medium-term impact on India’s defence exports market.
“In recent years, India has signed multiple deals with Indo-Pacific and Eurasian partners to export the BrahMos supersonic cruise missile and Akash surface-to-air missile, and the DRDO’s move could further expand this market through the production of new missile variants.
“GlobalData insights reveal that the Missile and Missile Defence Systems sector is expected to make up 60% of the Indian defence exports market between 2026–35. The DRDO’s transfer of technology unlocks the potential for further growth in this sector while simultaneously boosting India’s economy and reputation within the aerospace and defence markets.”
The approval aligns with the government’s objective of achieving the Aatmanirbharta (self-reliance) in defence and encouraging greater participation of Indian industry in defence manufacturing.
Last week, the MoD unveiled its sixth Positive Indigenisation List (PIL), identifying 405 new items, valued at an estimated Rs30.7bn ($320.8m), for domestic production as part of ongoing efforts to reduce import dependence.
