The Indian government has cleared the transfer of Defence Research and Development Organisation (DRDO) missile technologies to private companies, a move aimed at scaling up domestic production and boosting exports.

Analysts see the decision as a significant step in opening up missile manufacturing beyond the traditional state-owned players. PL Capital's Amit Anwani named Bharat Electronics, Bharat Dynamics (BDL), Solar Industries, Larsen & Toubro (L&T), Astra Microwave and Apollo Micro Systems as likely beneficiaries of the technology transfer.

Among these, Anwani picked Bharat Electronics as his top stock idea in the defence space.

The DRDO is India's premier agency for developing military technology, including a range of missile systems. The government's approval to transfer these technologies to Indian industry is expected to expand the country's defence manufacturing base, reduce import dependence, and support the broader goal of increasing defence exports.

The decision fits into India's broader policy push for defence indigenisation, under which the government has encouraged private-sector participation through programmes such as 'Make in India' and the corporatisation of ordnance factories, alongside DRDO's ongoing industry partnership frameworks. For years, missile production in India has been dominated by state-owned Bharat Dynamics, and the entry of private manufacturers is expected to widen the supplier base as demand rises.

The reported decision follows a related government approval to transfer DRDO missile technologies to Indian companies, as covered by CNBC-TV18. Industry watchers are likely to track which specific missile systems are transferred, the licensing terms offered to private manufacturers, and how quickly new production capacity comes onstream, as these will shape the pace of the government's defence export ambitions.

Source: CNNBC-TV18