On 25 August 2026, Union Defence Minister Rajnath Singh approved the transfer of technology for all conventional missile systems developed by the Defence Research and Development Organisation to the Indian defence industry. The Ministry of Defence stated that the move covers the shift from development to large-scale industrial production of missile systems.
Transfer of Technology in Defence Production
Transfer of technology, or ToT, is a process in which a developer shares design, manufacturing, testing, and integration know-how with another entity for production. In India’s defence sector, ToT is used to move systems from research establishments to licensed industrial production units.
Conventional missile systems are non-nuclear missile platforms used for strike, air defence, and tactical roles. The Defence Research and Development Organisation develops such systems through its laboratories and test facilities under the Ministry of Defence.
Industrial and Policy Framework
The approved policy permits eligible Indian companies to manufacture these missile systems after meeting qualification, certification, and regulatory requirements. The decision is linked with domestic value addition, indigenous manufacturing, and reduced dependence on defence imports.
The policy also creates supply-chain opportunities for micro, small and medium enterprises and other technology partners. These firms can participate in components, sub-systems, fabrication, testing, and maintenance support for missile production programmes.
Defence Ecosystem and Aatmanirbhar Bharat
The decision is aligned with Aatmanirbhar Bharat, a Government of India initiative associated with self-reliance in strategic sectors. In defence manufacturing, the initiative covers domestic design, development, production, and life-cycle support of military equipment.
The Defence Research and Development Organisation will continue to work with private and public sector firms for technology transfer and technology absorption. Technology absorption refers to the ability of an industry to assimilate and use transferred technical knowledge for production.
In October 2025, the Defence Ministry opened the development and manufacturing of missiles, artillery shells, and ammunition to the private sector. That policy change expanded the role of Indian industry in ordnance and missile production.
Important Facts for Exams
- The Defence Research and Development Organisation functions under the Ministry of Defence.
- Transfer of technology is a standard mechanism for moving defence systems from laboratories to factories.
- Micro, small and medium enterprises are classified under the Micro, Small and Medium Enterprises Development Act, 2006.
- Aatmanirbhar Bharat is a policy framework associated with domestic capability and reduced import dependence.
Defence Production in India
India uses licensing, joint development, and technology transfer to expand domestic defence manufacturing. Conventional missile systems remain subject to qualification, certification, and regulatory controls before industrial production begins.
