Quite a few points raised by
@Ifrit are harsh but true.
The major problems with DRDO imo:
1) Reservation for SC/ST, OBC.
2) Bad work culture
3) Useless upper management
4) Suppression of Talented scientists due to internal regional/caste politics.
All these plus more reasons result in an unprofessional organisation, which is responsible for cost overruns and delays of almost every single project it has undertaken.
A little info about our missiles:
Ballistic missiles: Our Agni series is comparable with the best in the world (accuracy and tech), the tech and know how gained by developing our space program will ensure and maintain our lead over Pakistan in BM tech.
Cruise missile and other missiles: Here work is in progress, if these missile are not up to the standard of defence requirements, they will be rejected, and foreign replacements will be procured. Its best to be optimistic about missiles like nirbhay, astra, etc.
Suggestions for improvements in DRDO:
1)Dismantling of the whole organisation, or at least the non performing labs.
2) Increased funding for R&D by private firms like Godrej & Boyce, Bharat Forge, Mahindra, Tata, etc.
3) Absorbing the brilliant scientists into these private firms
Or else let the non-performing labs be managed by private defence firms, but if the current methodology continues without any major reform, no improvement can be expected in DRDO results.
Source: I have worked in one of these pvt. firms and know 1st hand hand how DRDO functions.