NEW DELHI — India’s Ministry of Defence is expanding private-sector participation in tactical missile development and manufacturing under the Defence Acquisition Procedure (DAP) 2026, marking one of the most significant shifts in the country’s defence-industrial policy in recent years.
The reform brings major private Defence firms—including Adani Defence & Aerospace, Bharat Forge, ICOMM Tele Limited and Solar Industries—into a broader missile-development ecosystem through the Development-cum-Production Partner (DcPP) framework. Under this model, industry participates earlier in the development cycle, working alongside the Defence Research and Development Organisation (DRDO) in manufacturing planning, subsystem development, testing support and eventual production.
The move comes as India seeks to strengthen domestic defence manufacturing capacity, reduce supply-chain vulnerabilities and accelerate the induction of indigenous weapon systems.
The End of a Single-Source Model
For decades, Bharat Dynamics Limited (BDL) has served as India’s principal missile production agency, manufacturing a range of indigenous missile systems for the armed forces.While BDL remains a critical pillar of India’s missile ecosystem, policymakers increasingly believe that future requirements will demand a larger industrial base capable of supporting higher production volumes and faster delivery schedules.
DAP 2026 reflects that thinking. Rather than relying primarily on a single production agency, the government is attempting to build a competitive ecosystem where public-sector enterprises, private industry and DRDO collaborate to meet future operational requirements.
Why VSHORADS Matters
One of the most important programs expected to benefit from the new framework is the Very Short Range Air Defence System (VSHORADS).
The man-portable missile system has been designed to engage low-flying aircraft, helicopters and unmanned aerial vehicles, making it particularly relevant in an era increasingly defined by drone warfare.
For the Indian Army, VSHORADS offers an important layer of tactical air defence, especially in difficult terrain where mobility and rapid deployment are critical.
As drone proliferation reshapes modern battlefields, demand for such systems is expected to increase significantly.
Pralay and India’s Long-Range Strike Capability
The Pralay missile represents another important element of India’s evolving missile inventory.
Designed as a conventional surface-to-surface precision-strike weapon, Pralay is intended to strengthen India’s long-range conventional deterrence capability and provide military planners with additional options below the nuclear threshold.
As India expands its inventory of precision-guided weapons, manufacturing scale is becoming increasingly important. Broader industry participation could help accelerate production while reducing pressure on existing public-sector facilities.
The Technology Challenge
Missile manufacturing extends far beyond final assembly.
Modern missile systems require advanced electronics, propulsion technologies, precision guidance systems, specialized alloys and composite materials. Many of these technologies demand highly specialized manufacturing environments and long-term investment.
For private industry, participation in missile programs requires substantial capital expenditure in testing facilities, quality-control systems and advanced production infrastructure.The challenge is not simply building missiles—it is building an industrial ecosystem capable of sustaining production at scale while maintaining reliability and performance standards.
Building a More Resilient Supply Chain
Recent global conflicts have highlighted the importance of secure defence supply chains.
Governments worldwide are reassessing dependencies on imported components, critical materials and foreign suppliers. India is no exception.
By encouraging greater participation from domestic industry, policymakers hope to create a broader manufacturing base capable of supporting long-term military requirements while reducing exposure to external disruptions.
The effort also aligns with India’s wider push for defence self-reliance and indigenous capability development.
Opportunities for Industry in Tactical Missile Devlopment
For companies such as Adani Defence, Bharat Forge, Solar Industries and ICOMM, the reform presents an opportunity to expand beyond component manufacturing and become more deeply integrated into India’s strategic defence programs.
Success in missile production could also position these firms for future opportunities across adjacent sectors, including drones, precision-guided munitions, electronic warfare systems and advanced aerospace technologies.
More importantly, a stronger private-sector role could help accelerate innovation across the wider defence ecosystem.
What Happens Next?
The success of DAP 2026 will ultimately depend on execution.
Private firms must demonstrate that they can meet the quality, reliability and production standards required for advanced missile systems. At the same time, procurement processes must provide sufficient visibility and long-term demand signals to justify major industrial investments.
For India, the broader objective is clear: build a defence-industrial ecosystem capable of supporting future military requirements with greater speed, scale and self-reliance.The opening of tactical missile production to private industry represents an important step toward that goal and could become one of the defining defence-manufacturing reforms of the decade.
