2024-08-18 06:19:38
New Delhi: India is rapidly moving towards becoming a global superpower in ammunition manufacturing. A new report by FICCI and KPMG highlights India’s capabilities and strategic progress in this important sector. It states that India has the potential to capture the fastest growing arms market in the world. The Ammo India 2024 report highlights the growing opportunity in the ammunition manufacturing sector. Geopolitical conflicts, increased military spending and rising insurgencies have rapidly increased military spending in the world. This has increased the opportunities for Indian companies in the global arms market.
India’s growing role in the global market
According to the Ammo India 2024 report, the global ammunition market is expected to grow at an annual rate of 3.95 percent to reach Rs 1,84,092 crore ($22 billion) by 2032. India’s domestic arms industry is going to play an important role in this growth path. In the year 2023, the global demand for ammunition was estimated at Rs 1,29,260 crore ($15.5 billion). In this, the share of heavy caliber ammunition was the highest at 53.4 percent. This was followed by grenades, mines and mortars at 23.27 percent and medium caliber at 12.84 percent.
Strength in Indian market
The Indian ammunition market is on track to grow rapidly. The ammunition market is projected to grow substantially and is expected to be worth Rs 7,057 crore ($844 million) by 2032, representing around 5.5% of the global ammunition industry. The report estimates the market to grow at a CAGR of 4.93% to Rs 11,981 crore ($1.4 billion) over the period 2023-2032.
The Indian ammunition industry has traditionally been dominated by government-owned entities such as Defence Public Sector Undertakings. Despite their significant contribution, these organisations have been plagued by outdated technology, inefficiencies and supply chain disruptions. This has limited their ability to meet demands. Liberalisation policies in defence production and initiatives such as Make in India have played a key role in attracting private sector participation. The sector has seen a surge in investment from both domestic and international players. Ammunition weapons are divided into three main categories.
Small caliber ammunition- Weapons falling in this category are mainly used by soldiers. It includes weapons of 5.56 mm, 7.62 mm, 9 mm and 12.7 mm caliber. Indian military forces mainly rely on the 5.56 x 45 mm NATO round.
Medium caliber ammunition- These are deployed on armoured combat vehicles, aircraft, anti-aircraft mortars and ships. These include shells ranging from 20 mm to 120 mm calibre.
Heavy caliber ammunition- These ammunitions used in tanks and artillery are of 105 to 120 mm caliber. India is upgrading its artillery to 120 mm caliber.