Stories
Defence Secy: DRDO Must Cut Projects to 10, Boost Private Role in Production
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CNBC TV18•25-09-2026, 16:26
Defence Secy: DRDO Must Cut Projects to 10, Boost Private Role in Production
- •Defence Secretary Rajesh Singh stated DRDO needs to reduce its 37 projects to around 10, focusing on cutting-edge technology and prototyping, while industry handles production.
- •The new strategy clarifies responsibilities: DRDO for advanced research and prototyping, with production by both public and private sectors, potentially involving academia.
- •Private companies can now act as development-cum-production partners or receive technology transfers, expanding their role in defence manufacturing.
- •For missiles, private firms can undertake entire system integration, competing with Bharat Dynamics Ltd (BDL) to boost performance and production.
- •India aims for exponential growth in defence equipment production, with multiple players in drones, missiles, and fighter aircraft, and reduced dependence on single PSUs for ammunition.
Key Questions Answered
DRDO currently has 37 projects, which Defence Secretary Rajesh Singh stated should ideally be reduced to around 10 to allow the organization to concentrate entirely on advanced research and cutting-edge technology development.
The government has decided that private companies can now undertake entire system integration for missiles rather than being restricted only to sub-integration, enabling them to compete with Bharat Dynamics Ltd and boost overall production.
India's defense industrial base currently comprises approximately 15 public sector undertakings (PSUs), between 8 and 10 large private sector companies, and roughly 16,000 MSMEs.
