No, they can't. it's just R&D labs. There are no profit or loss statements here. Some areas like this and ISRO will remain fully under state. Like DARPA and NASAObviously not.. But they can be corporatized.
That is organizational reform. Deciding what to work on and not to. When industry mature automatically there is no need for DRDO to it. The industry will be always more efficient. Whereas the industry cannot invest in the next generational technologies because the risk is too high. There we need DRDO and state funding to explore those.wholesale privatization will never happen. But projects or parts of it can certainly be given to private or thirdparty if they have the capability. The very idea of depending on one organization for critical projects is total nonsense, other than budgetary constraint I dont see any other good reason for DRDO to hog all the projects.