By Sangeeta Saxena

New Delhi. 14 August 2024. Global ammunition market valued at INR 1,29,260 crores (USD 15.5 billion) in 2023, with heavy calibre ammunition dominating the market is a demand which needs to be satiated and India’s ammunition market currently valued at INR 7,057 crores (USD 844 million),  is expected to grow at a CAGR of 4.93% to INR 11,981 crores (USD 1.4 billion) by 2032. The time has come to intensify our efforts to position India as the world’s preferred ammunition provider by accounting for up to 30% of the global armaments market. Ammunition is a crucial component of war equipment and weapons. The program was designed to help form the aforementioned national vision by balancing the requirements of the Indian Armed Forces with the potential for growth in the country’s defence sector and the possibility of working with friendly countries to jointly benefit from cutting-edge technologies and access international markets.

The Federation of Indian Chambers of Commerce & Industry (FICCI) recently hosted AMMO INDIA 2024, a pivotal conference under the banner “Make in India – Make for the World.” This significant event is being held at FICCI’s Federation House in New Delhi, and it marks a critical step in advancing India’s ammunition manufacturing capabilities, both for domestic needs and global markets.

Chief of Defence Staff Gen Anil Chauhan PVSM UYSM AVSM SM VSM ADC exhorted, “ we are passing through an era of deep global disruption. We’ll talk about global disruption. It encompasses technological disruption, economic, environmental, whether it is climate change, demographic, migration of people, or whether it’s peace and security. The global security environment has been altered actually by two major wars that are not only intense, but has also been protracted for a very, very long time. However, there are a number of other conflicts also, ranging from the other parts of the world, be it Myanmar, be it Sudan, the Sahel region, or Congo. The war in Libya, Syria, Yemen, and Armenia may have settled down for the time, but peace or lasting peace is yet elusive. In my view, I think the world is actually in the most violent phase of its existence ever since World War II. The vagaries of this VUCA war are severely impacting the global defense supply chains, especially aggression. The global arms market is grappling with a kind of a gap between this widening gap between demand and supply. The reliance on imports to bridge this gap is becoming a necessity for most nations, highlighting global interdependence in defense supplies. But yet, there is a saying that in every challenge there lies an opportunity, in every cloud there is a kind of a silver lining. These disruptions have presented an opportunity for the global defense arms manufacturers, including the ammunition industry, including Indian one.”

Ammunition is a fundamental component of military combat readiness, essential for the operational effectiveness of armed forces. As global geopolitical dynamics become increasingly complex and the demand for advanced military equipment rises, the importance of a robust and self-reliant ammunition manufacturing sector in India cannot be overstated. AMMO INDIA 2024 is not just a conference; it is a strategic initiative aimed at positioning India as a preferred supplier of military ammunition on the global stage.

With India’s defence sector undergoing a significant transformation driven by the “Make in India” and “Atmanirbhar Bharat” initiatives, the country is now on a determined path to reduce its reliance on foreign imports and build a strong indigenous defence manufacturing base. The Ministry of Defence has already introduced the 5th Positive Indigenisation List, which includes plans to stop the import of all types of ammunition by 2025. This is a bold move towards achieving “Raksha Aatmanirbharta” or self-reliance in defence, making conferences like AMMO INDIA 2024 more critical than ever.

India’s story of ammunition growth is a positive one with an exciting narrative.  Munitions India Ltd (MIL) registered revenue from operations of Rs. 7126 Crores (Provisional & Unaudited) for financial year 2023-2024. The company recorded a revenue growth of around 54% during the year as compared to previous financial year. Debashish Banerjee, CMD Munitions India Ltd. informed, “ MIL has registered more than 50% increase of sales of this financial year over the previous financial year. Adding to that, the last financial year’s export sales, it contributes to about one-fourth of our turnover in the last financial year. MIL is committed for the development of a strong and sustainable defence ecosystem in India. Under Making India Initiative, MIL has been collaborating with the Indian industries and have signed MUs with various industry partners for developing new products. MIL has developed new products, name a few, PDO 557, which totally you are exporting, drone delivery, ammunition, etc., etc., and it has done this along with co-production and co-development or joint ventures with the Indian industries. MIL has been providing supports to different private players also. MIL is also developing smart ammunition with 100% indigenous content in collaboration with academia and Indian industries.”

The global ammunition market, estimated to be worth USD 75.27 billion in 2024, offers immense opportunities for Indian manufacturers. The conference aims to align the requirements of the Indian Armed Forces with the capabilities of the Indian defence industry, and to explore potential collaborations with friendly nations. By bringing together key stakeholders—government officials, industry leaders, defense experts, and international partners—AMMO INDIA 2024 provides a unique platform to discuss and strategize on how India can capture up to 30% of the global arms market during the ‘Amritkal’ period.

The CDS reiterated, “ India has its own share of challenges, security challenges. We have proxy war raised by Pakistan and government Kashmir whose sudden escalation we are now seeing in South of Punjab and the prolonged border dispute with China is yet to abate. These are two major security challenges that we face. The instability in our neighbourhood is another cause of concern for us. A strong armed force backed by a strong defence industrial sector is hence a sign of concern for the nation state. For a large nation like India, with multitude of security problems, it cannot remain dependent on foreign imports for war fighting and sustenance, especially in an environment where the global security environment is in a state of flux and we have live borders at hand. India’s quest for indigenisation and Atma Bharta is central to maintaining the strategic autonomy. In fact, the word Atma Bharta actually starts with the word Atman which is talking about self or self-reliance. The word self-reliance also starts with self actually. So what we are talking about is actually self-realisation and self-actualisation and that will bring about the self-confidence in our defence industry. So that I think is important. And this whole concept of Atmanirbharta you can see is slightly more than just about defence manufacturing. If we are to translate this concept of only in defence manufacturing or ammunition manufacturing, it means complete sovereignty over the product cycle right from its design and its development to manufacturing from induction to sustenance and even to its end of life. That means a complete home to a tomb kind of an approach.”

“Coming to the theme of today’s conference, military ammunition, make in India and make for the world. Let me say that munitions and ammunition are a feed for the military. It helps the military to fight, survive and win. Like food, it satisfies not only the physiological needs but also the higher order needs. All this becomes relevant actually to planning considerations. Another area where we need to focus is on the latest development and design of ammunitions. The family of ammunition has evolved over a period of time from the era of dumb bombs and ammunition to precision guided, smart ammunition, loiter ammunition,” he added.

AMMO INDIA 2024 is also focused on leveraging cutting-edge technologies to enhance the quality, reliability, and cost-effectiveness of Indian-made ammunition. The collaboration with international partners is a key aspect of this initiative, allowing India to integrate the latest technological advancements into its manufacturing processes. This not only strengthens the domestic industry but also enhances India’s competitiveness in the global market.

Ashish Kansal Owner Executive Director, SMPP speaking straight forth stated, “ We still ask you for more and we keep asking because our aspirations are growing, the more positiveness we see from you. We are setting higher targets from what we see as a positive approach coming from the government and this will propel us to ask for more positive steps from the government. Some of the steps we today look forward to, specifically in the ammunition field which we are discussing today, we have to understand ammunition, especially if I talk about the medium calibre and the large calibre, it has its own nuances vis-a-vis many other products. The amount of land area required to make these safety distances, the kind of explosive licences required, the kind of permissions required, that itself is a humongous task for the industry.”

He added, “Any new industry which we are trying to set up in this field cannot compete with an industry which is existing. We are definitely trying to cooperate with our elder brother, which is the Munitions India, which is leading the way, but sir, at certain places we may not be able to compete at all. That is where we request a hand-holding from the armed forces, from the government to come out with policy initiatives so that procurements can happen from the private industry and that initial support which any industry requires to grow is provided. If we are put to compete with an existing industry, specifically in this field, it probably may not be possible. The other point in this comes on, also is on the economic scales. If the order volumes are low or if the order volumes are not sustained, the amount of capital expenditure required for setting up any ammunition facility, it will be impossible for any tech entrepreneur to put any foot in this field, given the risk involved. This again we would request as a policy initiative to look at not just 10-year contracts, but look at volumes in those contracts also, so that at least it makes sense to set up a facility to put those kind of volumes. On the licensing side, we have seen a huge improvement which has happened.”

Aligning with global markets and technological advancements India’s Strategic Ammunition Manufacturing Drive involves convergence of all stakeholders. Indian Army’s New Vice Chief of Army Staff: Lt Gen NS Raja Subramani stated , “we need to frame GSQRs very intelligently so we don’t have to frame GSQRs for older variety of ammunitions. We need diversity if we are going to look at self reliance.” The conference has drawn significant attention from all quarters of the defence and industrial sectors. With KPMG as the knowledge partner, AMMO INDIA 2024 is designed to facilitate high-level discussions and networking opportunities that will drive the future of ammunition manufacturing in India. The event will cover a wide range of topics, including supply chain management, quality control, regulatory frameworks, and the integration of new technologies.

Previous editions of AMMO INDIA, held in 2018 and 2022, received an encouraging response, setting the stage for this year’s event to be even more impactful. The 2024 edition aims to build on past successes and take the conversation further by addressing the current challenges and future possibilities in ammunition manufacturing.

“We are planning to spend more than 300 crores in R&D in next three years. Every production unit, our every production unit has got dedicated R&D centres. We have introduced MIL Innovation Team and that has launched to motivate employees to come forward for providing different innovative ideas for products and processes. MIL has collaborated with IIT Madras, wherein we have devised a MT courses for ammunition technology, which is being conducted exclusively for our own employees or to make them technical expert in the R&D field, so that they become pioneer in future for the innovations. Human Resource Development is another area where we are laying down lot of emphasis. We expect to make MIL as one of the best places to work. National Academy of Defence Production, our one of the unit for training, has been running post-graduate business program on defence management and aimed at development of professionals in the Indian defence industry. We believe innovation in technology and HR practices should go hand in hand and should go together. We are aware that to compete in highly competitive global market, the units of MIL must have state-of-the-art production facilities and testing facilities. For this, we have planned a huge capacity augmentation and modernization planning and huge investment is done in this area. This is being done for the requirement of modern plant and machinery for meeting enhanced domestic as well as global requirements. I believe the current scenario is just beginning of Indian ammunition industry and business prospects,” added Debashish Banerjee who at the helm of affairs at Munitions India Ltd. has embarked on a journey to involve academia with full force .

AMMO INDIA 2024 is more than just a conference; it is a strategic endeavour to propel India towards becoming a global leader in ammunition manufacturing. By focusing on self-reliance, technological innovation, and international collaboration, the event is poised to play a crucial role in shaping the future of India’s defence manufacturing sector. As India continues to assert its position as a rising global power, AMMO INDIA 2024 serves as a critical platform for driving the nation’s vision of becoming a leading ammunition supplier to the world.