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India Records Record Defence Exports as Delhi Moves to Let Private Firms Build Missiles

Opening missile production to private companies seeks to relieve state capacity constraints.

Overview

  • India reported defence exports of Rs 38,424 crore in FY 2025-26, a sharp year-on-year rise that reflects a shift from component sales to full indigenous systems.
  • The Defence Ministry is reported to be preparing a Request for Proposal to invite private conglomerates to manufacture the DRDO-developed Astra Mark 2, with coverage describing the move as imminent but not yet finalized.
  • Media reports name ICOMM, Adani Defence, Bharat Forge, the Tata group and the Mahindra group as likely invitees to compete for Astra Mark 2 production, which sources say has a reported range of about 180–200 km and is planned for integration with Indian fighters.
  • Officials and reports indicate the Pralay tactical ballistic missile, a two-stage weapon with roughly 500 km range, is likely to be the next programme opened to private development and manufacture.
  • The export surge is built on recent sales of systems such as BrahMos, Astra Mk-1 and Akash and a near-even exporter split this year (roughly 55% state DPSUs and 45% private firms), a change that could speed deliveries, expand jobs in the defence supply chain, and deepen long-term maintenance ties with buyer countries.