(MENAFN- KNN India)
New Delhi, Aug 9 (KNN) India's ammunition industry is on the brink of significant growth, according to a new report titled "AMMO India 2024" released by FICCI and KPMG on Thursday.
The report highlights India's potential to become a global powerhouse in defence manufacturing, with a particular focus on the ammunition sector.
This growth is driven by several factors, including ongoing geopolitical conflicts, increased military spending, and rising insurgency concerns.
In 2023, the global ammunition market was valued at Rs 1,29,260 crores (USD 15.5 billion), with heavy calibre ammunition dominating the market at 53.48 per cent of global demand.
Grenades, mines, and mortars followed at 23.27 per cent, while medium calibres accounted for 12.84 per cent. Looking ahead, the global ammunition production is expected to reach Rs 1,84,092 crores (USD
22.0 billion) by 2032, growing at a compound annual growth rate (CAGR) of 3.95 per cent.
India's share in this growing market is substantial and poised for expansion. KPMG estimates that the Indian ammunition market was worth Rs 7,057 crore (USD 844 million) in 2023, representing about 5.5 per cent of the global industry.
The report projects that the Indian market will grow at a CAGR of 4.93 per cent, reaching Rs 11,981 crore (USD 1.4 billion) by 2032.
Traditionally, India's ammunition industry has been dominated by government-owned entities, including Defence Public Sector Undertakings (DPSUs) and Ordnance Factories (OFs).
However, these organisations have faced challenges such as outdated technology, inefficiencies, and supply chain constraints.
This has created an opportunity for private sector participation, further encouraged by the liberalisation of defence production policies and initiatives like 'Make in India'.
The report also provides insights into the various types of ammunition used by Indian armed forces. Small-calibre ammunition, including sizes like 5.56mm, 7.62mm, 9mm, and 12.7mm, is widely used, with 5.56 x 45 mm NATO rounds being particularly common.
Medium-calibre ammunition, ranging from 20mm to 40mm, is crucial for armored fighting vehicles, aircraft, anti-aircraft artillery, and ships. In the heavy calibre category, which includes 105mm and 120mm tank ammunition, the Indian military is moving towards standardizing its artillery guns at 120mm calibre.
As India aims to consolidate its position in the global defence manufacturing arena, the ammunition sector presents a promising starting point.
With strategic initiatives and pressing security needs driving growth, the industry is set for significant expansion and technological advancement in the coming decade.
(KNN Bureau)
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