Schedule a Call Back
India needs to strengthen ammunition sector to become defence manufacturing hub
Industry News- Aug 12,24
In 2023, the global ammunition market was valued at approximately Rs 1.293 trillion, with heavy-calibre ammunition making up 53.48% of the demand.
India's ambition to become a global leader in defence manufacturing may find its foundation in strengthening its ammunition sector, according to the AMMO India 2024 report released by FICCI and KPMG. The report highlights the significant opportunities within India's ammunition industry, driven by geopolitical tensions, increased military expenditures, and rising insurgencies.
In 2023, the global ammunition market was valued at approximately Rs 1.293 trillion, with heavy-calibre ammunition making up 53.48% of the demand. Grenades, mines, and mortars accounted for 23.27%, while medium-calibre ammunition constituted 12.84%. The global production of ammunition is projected to grow to Rs 1.84 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 3.95%.
The report notes that “Indian ammunition is on a fast track to growth, driven by a blend of strategic initiatives and urgent security needs.” According to KPMG, the Indian ammunition market was valued at Rs 70.57 billion in 2023, representing about 5.5% of the global market. It is anticipated to expand at a CAGR of 4.93% to reach Rs 119.81 billion by 2032.
Historically, the Indian ammunition sector has been dominated by government-owned Defence Public Sector Undertakings (DPSUs) and Ordnance Factories (OFs). However, these entities have struggled with outdated technology, inefficiencies, and supply chain issues, necessitating a more agile and modern production framework.
Recent years have seen increased investment from both domestic and international players, driven by the liberalisation of defence production policies and initiatives like ‘Make in India’. This has encouraged private sector participation and revitalized the sector.
The Indian military uses various calibres of ammunition, including small-calibre rounds like 5.56mm, 7.62mm, 9mm, and 12.7mm, with 5.56 x 45 mm NATO rounds being predominant. Medium-calibre ammunition includes 20mm, 25mm, 30mm, and 40mm, used in armoured vehicles, aircraft, anti-aircraft artillery, and naval ships. Heavy-calibre ammunition, such as 105mm and 120mm tank rounds, is being standardized, with the Indian military moving towards 120mm calibre artillery guns.
(Business Standard)
Related Stories
Machine Tools & Accessories
Phillips Machine Tools to bring titanium and hi-tech materials to India
To facilitate the initiative, PMT plans to obtain an import license within six months, a process requiring demonstrable R&D capabilities and specialised equipment.
Read moreAerospace Defence
Sig Sauer to manufacture 73,000 assault rifles by 2025 for the Indian Army
Sig Sauer also plans to increase the proportion of locally manufactured components, integrating more Indian technology and materials into its products.
Read moreAerospace Defence
Bharat Forge secures major ATAGS contract for Indian Army
This landmark order marks a boost for India's indigenous defence capabilities and reflects the country’s emphasis on self-reliance in defence manufacturing.
Read moreRelated Products
Troop Comforts revolutionises military gear with indigenous innovations
Aerospace & Defence
Troop Comforts Ltd (TCL), a state-owned defence corporation, has recently received a request for proposal (RFP) from the Northern Command of the Indian Army for its indigenously developed military gea Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
