India has approved the transfer of technology for conventional missile systems from a state-run organization to private companies, giving commercial industry a larger role in the country’s missile manufacturing base.

The Indian defense ministry described the decision as an “important milestone” in a statement issued Tuesday. It said sharing missile technology with private companies would strengthen operational capability, reduce dependence on imports and use Indian industry to develop and manufacture advanced defense systems.

The approval is intended to help expand production capacity beyond India’s established state-led defense structure. The Defence Research and Development Organization develops the country’s indigenous missile systems, while state-owned companies have traditionally dominated manufacturing. Private industry has increasingly taken on a larger role in India’s defense sector, but missile production has remained closely associated with government institutions.

The ministry’s announcement did not identify the companies that may receive technology or provide a schedule for individual transfers. It also did not specify which conventional missile systems are covered by the approval. The decision therefore establishes a framework for participation by private companies without detailing the programs, recipients or production timelines involved.

The move comes as countries examine how quickly they can replenish missiles and ammunition consumed during extended conflicts. The wars in Ukraine and the Middle East have highlighted the difficulty of replacing stocks during hostilities. Shortages of U.S.-made Patriot interceptors have strained Ukraine’s air-defense capabilities and raised concerns about the availability of some weapons for U.S. allies in the Middle East.

India’s armed forces are seeking to build up their missile inventories. The country relies largely on domestically produced missiles, while also operating some advanced systems imported from Russia and Israel. Expanding the number of companies able to contribute to missile development and manufacturing is intended to support greater self-reliance and provide additional industrial capacity.

The decision also reflects concerns about the demands that a sustained conflict could place on missile stocks. Manoj Joshi, a distinguished fellow at the Observer Research Foundation in New Delhi, said India’s brief conflict with Pakistan last year demonstrated how quickly missile consumption could become a concern if fighting continued for longer.

“The hostilities with Pakistan lasted four days, but if they had dragged on, India too might have faced a problem with missile stockpiles because missiles were extensively used during the conflict,” Joshi said, according to Defense News. He also pointed to the longer conflict involving Iran and the difficulties even the United States has faced with some munitions.

Joshi said greater private-sector participation could make India’s defense industry more agile and productive as the country pursues greater self-reliance. The technology-transfer approval is part of that effort, but its practical effect will depend on how the government implements the policy and which companies are ultimately brought into missile production.