New Delhi. 09 August 2024. In a significant leap towards establishing itself as a global leader in defense manufacturing, India is poised to transform its position in the global ammunition market. The “AMMO India 2024” report, a collaborative effort by the Federation of Indian Chambers of Commerce & Industry (FICCI) and KPMG in India, paints a compelling picture of India’s evolving defense landscape. This comprehensive report delves into the strategic advancements, market trends, and challenges facing the Indian ammunition industry, while also highlighting the vast opportunities that lie ahead. As India embraces the path of self-reliance and innovation, the AMMO India 2024 report underscores the nation’s potential to not only meet its domestic defense needs but also emerge as a key player in the global ammunition market.

In a bold stride towards becoming a global powerhouse in defense manufacturing, India is set to redefine its position in the ammunition market. The AMMO India 2024 report, a collaborative effort by FICCI and KPMG in India, presents a compelling narrative of India’s potential and strategic advancements in this critical sector. This report not only highlights the current trends and challenges but also underscores the immense opportunities that lie ahead for India’s ammunition industry.

Key Data Points:

  1. Global Market Size: In 2023 the global demand for ammunition was pegged at INR 1,29,260 crores (USD 15.5 billion) with heavy calibre ammunition accounting for 53.48% of the global demand, followed by grenades and mines and mortars at 23.27% and medium calibres at 12.84%. Fueled by the demand drivers mentioned here, the global ammunition is expected to increase to INR 1,84,092 crores (USD 22.0 billion) in 2032, increasing at a CAGR of 3.95%.
  2. Indian Market Growth: The Indian ammunition market, is on a fast track to grow driven by a combination of strategic initiatives and pressing security needs. Given the ammunition market is witnessing substantial growth we estimate the current market to be worth INR 7,057 crore (USD 844 million) in 2023 which is about 5.5% of the global ammunition industry. Over the period 2023-2032 we anticipate the market to increase at a CAGR of 4.93% to INR 11,981 crore (USD 1.4 billion)
  3. Geopolitical conflicts, increase in military spending and rising insurgency are the primary reasons for the growth of this industry. This presents increased opportunities for Indian companies in the global ammunition market
  4. Indian Ammunition Industry Ecosystem – The Indian ammunition industry has traditionally been dominated by government-owned entities namely Defence Public Sector Undertakings (DPSUs).  Despite their significant contribution, these organisations have faced legacy issues such as outdated technology, inefficiencies, and supply chain constraints, limiting their ability to meet demands. This has catalysed the need for a more dynamic and responsive production ecosystem. In response to the increasing demand and supply- demand gap, the sector has seen a surge in investments from both domestic and international players. Liberalisation of defence production policies and initiatives like ‘Make in India’ have played a crucial role in attracting private sector participation.

Cdr Gautam Nanda, Associate Partner, Aerospace and Defence, KPMG in India said “India’s journey towards self-reliance in the ammunition sector is a collective effort that requires the dedication and ingenuity of all stakeholders. As we move forward, we remain committed to the vision of a self-reliant India, where our capabilities are built on the foundation of strength and innovation.”

As India continues to focus on self-reliance and innovation, the future of its ammunition market looks promising, ready to meet both domestic and global defence needs. This optimistic outlook reflects a nation on the precipice of significant advancements, poised to make substantial contributions to make substantial contributions to the global defence landscape.

As India strides confidently towards self-reliance in the ammunition sector, the “AMMO India 2024” report reveals a future brimming with potential and opportunities. The nation’s ammunition market, driven by strategic initiatives, growing military needs, and geopolitical dynamics, is set for substantial growth in the coming decade. The report underscores the critical role of both government and private sector players in shaping a dynamic and responsive production ecosystem. With continued focus on innovation, investment, and collaboration, India is well-positioned to make significant contributions to the global defense landscape. The optimistic outlook presented in this report reflects a nation on the cusp of major advancements, ready to redefine its role in the global ammunition industry.