SOURCE: AFI
India is positioning itself as a global powerhouse in ammunition manufacturing, with the potential to capture a significant share of the growing global market, according to a new report by FICCI and KPMG.
The AMMO India 2024 report underscores the burgeoning opportunities in the ammunition sector, driven by increased global military spending, ongoing geopolitical conflicts, and rising insurgency concerns. The global ammunition market is projected to reach a substantial Rs 1,84,092 crores (US$ 22 billion) by 2032, expanding at a CAGR of 3.95%.
India’s domestic ammunition industry is poised to play a pivotal role in this growth trajectory. The report emphasizes the need to consolidate India’s position in the ammunition market as a crucial step towards achieving the nation’s broader goal of becoming a global defence manufacturing hub.
The ammunition market is segmented into three primary categories:
- Small-calibre ammunition: Primarily used by infantry and includes calibers such as 5.56mm, 7.62mm, 9mm, and 12.7mm. The Indian armed forces predominantly rely on 5.56 x 45 mm NATO rounds.
- Medium-calibre ammunition: Employed by armoured fighting vehicles, aircraft, anti-aircraft artillery, and ships. This category encompasses high-performance rounds ranging from 20mm to 40mm.
- Heavy-calibre ammunition: Used in tanks and artillery, with calibers such as 105mm and 120mm. India is currently standardizing its artillery guns at the 120mm caliber.
The report highlights the immense potential for India’s ammunition industry, given the country’s large-scale production capabilities and cost-effective manufacturing processes. By capitalizing on these strengths and focusing on research and development, India can emerge as a global leader in ammunition production.