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Defence Minister Rajnath Singh approved the transfer of technology of all conventional missile systems developed by DRDO to the Indian defence industry on 25 August 2026.
The Ministry of Defence described the decision as the shift of these systems from development to large-scale industrial production within the country.
Eligible Indian companies may manufacture the systems after meeting qualification, certification and regulatory requirements; DRDO continues to support technology absorption.
The approval opens component, sub-system, fabrication, testing and maintenance work to micro, small and medium enterprises.
It follows the October 2025 decision that opened development and manufacture of missiles, artillery shells and ammunition to the private sector.
ToT is the formal handover of design drawings, manufacturing processes, testing protocols and integration know-how from a developer to a production agency. It is distinct from a licence to assemble imported kits, because the recipient receives the knowledge needed to make the system. Technology absorption is the recipient's ability to actually assimilate and use that knowledge - a firm can hold a ToT agreement and still fail to produce, which is why DRDO continues to work alongside industry after the transfer. Qualification and certification remain mandatory: the transferred technology does not by itself authorise a company to field a weapon.
Simple Analogy: Handing over a recipe is transfer of technology; being able to cook the dish consistently in a commercial kitchen is technology absorption.
India's military R&D agency; develops missiles, radars, armour, aeronautical and naval systems and transfers the technology to production agencies
Defence is the flagship sector of the self-reliance push; indigenous design, development, production and life-cycle support are the four stages the policy targets.
The Ministry of Defence has notified successive lists of items barred from import beyond fixed timelines, creating the assured demand that makes private missile production commercially viable.
Sub-system and component work is the standard entry route for MSMEs into defence supply chains, linking this decision to the MSMED Act, 2006 framework.
The same week saw CSIR-NAL unveil indigenous micro gas turbine engines - both are attempts to move strategic sub-systems from import to domestic manufacture.
GS Paper III > Science and Technology: indigenisation of technology and developing new technology; Security: defence industry and internal security linkages
General Awareness > Current Affairs > Defence
General Knowledge > Defence organisations, DRDO missiles and indigenisation policy
General Awareness > Current Affairs
Formal handover of design, manufacturing, testing and integration know-how by a developer to a production agency.
The capacity of an industry to assimilate transferred technical knowledge and use it in actual production.
A non-nuclear missile platform used for strike, air defence or tactical roles, as opposed to strategic nuclear-capable systems.
Integrated Guided Missile Development Programme, sanctioned in 1983 under DRDO, which produced Prithvi, Agni, Akash, Trishul and Nag.
Government of India framework for self-reliance; in defence it covers indigenous design, development, production and life-cycle support.