DRDO has, for the first time, invited private companies to compete for development and production work on strategic weapons, including future Agni-series and submarine-launched nuclear-capable systems.
Strategic weapons were until now built almost exclusively by public-sector firms such as Bharat Dynamics Ltd, unlike tactical missiles, which were opened to private players in mid-2026.
Companies will need a defence manufacturing licence, a PESO explosives licence, and minimum turnover and net-worth thresholds before being shortlisted for project-specific tenders.
For the first time, India's Defence Research and Development Organisation (DRDO) is preparing to bring private companies into the development and production of its most closely guarded weapons — the strategic missile systems that underpin the country's nuclear deterrent.
According to a report in The Economic Times, DRDO's Department of Missiles and Strategic Systems has floated an expression of interest inviting private firms to participate in future projects, a category of work that has included the Agni series and is now also expected to cover future variants of nuclear weapons, including submarine-launched systems.
The move extends a broader policy shift already under way in India's missile industry, and marks the point at which that shift reaches the country's most sensitive weapons category.
What exactly has DRDO opened up to private companies?
DRDO's Department of Missiles and Strategic Systems — the wing responsible for developing the Agni series and future nuclear-capable systems, including submarine-launched variants — has floated an expression of interest to identify private companies for its future development and production plans, according to the Economic Times report.
Under the plan, interested firms will first be shortlisted on technical and financial criteria, after which specific tenders will be issued for individual DRDO projects, following the development-cum-production partner model already used for tactical missiles.
What makes a weapon system "strategic"?
India's missile programme is broadly split into tactical and strategic categories. Tactical missiles are short-to-medium-range guided weapons carrying conventional warheads, built for precision strikes against localised enemy forces, infrastructure or assets on the battlefield.
Strategic systems, by contrast, are long-range weapons — including the nuclear-capable Agni series and submarine-launched missiles — that form part of India's nuclear deterrent architecture, which is why their design, production and custody have historically been kept under far tighter state control than conventional arms.
Why is DRDO bringing private firms into this space now?
This move builds directly on a policy shift that began earlier in 2026. Under the Defence Acquisition Procedure 2026, the Ministry of Defence ended Bharat Dynamics Limited's long-standing monopoly on tactical missile production in June, distributing 10-12 tactical missile projects — including the Pralay quasi-ballistic missile, the NASM-SR anti-ship missile and the Rudram series — between public and private firms such as Adani Defence, Bharat Forge, ICOMM and Solar Defence.
Defence Secretary Rajesh Kumar Singh had signalled as early as May 2026 that ballistic missile production could eventually be opened to private industry too, a step this expression of interest now formalises for strategic systems. The push follows Defence Minister Rajnath Singh's public praise of DRDO-developed weapons for their performance during Operation Sindoor, and sits alongside the government's DFP-2026 empowerment framework and a defence budget that has earmarked roughly 75 per cent of capital procurement for domestic industry, including private players.
How will companies qualify?
Firms seeking to participate will need an industrial licence for defence manufacturing and a PESO licence to handle and store explosives, alongside minimum turnover requirements and a net worth exceeding 5 per cent of a project's expected value.
DRDO will additionally assess applicants on their project management expertise, their track record executing large-scale production orders, and their infrastructure and technical capability to deliver bulk orders of more than 50 or 100 units. Before any shortlisting, a DRDO-constituted committee of experts will physically visit each applicant's premises to verify these claims.
Which private defence companies could benefit?
The Economic Times report names Solar Aerospace and Defence and Tata Advanced Systems Ltd as established private players expected to be considered for the new strategic projects. That list builds on the roster of firms already contracted under the tactical missile opening earlier in 2026 — among them Adani Defence and Aerospace, Bharat Forge, ICOMM, and Solar Defence and Aerospace — while Bharat Dynamics Ltd and Bharat Electronics Ltd, the incumbent public-sector players, remain contracted for the same projects, in several cases partnering directly with private firms under a hybrid model rather than being displaced outright.
What changes when private industry enters strategic weapons?
Until now, strategic weapons were primarily produced by public sector companies such as Bharat Dynamics Ltd, a structure that mirrored the exclusive role BDL and Hindustan Aeronautics Limited long held in missile and aerospace manufacturing respectively. Under the new model, at least two companies will be selected for each project, working alongside DRDO to build prototypes that undergo testing before any production order is placed — and production orders only follow if the systems are inducted in volume by India's strategic forces.
The approach is designed to shorten development cycles and expand production capacity, addressing delays that parliamentary committee reports have flagged in DRDO programmes, while widening the country's defence industrial base beyond a handful of long-standing public sector undertakings.
What are the security and oversight challenges?
Extending private participation into nuclear-capable and submarine-launched systems raises stakes that tactical missile production did not carry, given these weapons' direct link to India's strategic and nuclear command structures. The licensing and vetting requirements laid out so far — industrial and explosives licences, financial thresholds, and DRDO site inspections — mirror the process used for conventional tactical systems, and public reporting has not yet detailed additional security clearance protocols specific to nuclear-linked work.
Balancing a broader industrial base against the need to protect sensitive design data and production know-how, while also ensuring newly inducted private contractors can meet the accountability and delivery standards expected of programmes tied to national deterrence, is likely to be the central tension as this policy moves from expression of interest to actual contracts.
