AMMO India 2024: Make in India – Make for the world

In a bold stride towards becoming a global powerhouse in defence manufacturing, India is set to redefine its position in the ammunition market. The AMMO India 2024: Make in India – Make for the world 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.

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%. 

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 2023-32 we anticipate the market to increase at a CAGR of 4.93% to INR 11,981 crore (USD 1.4 billion)

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

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 Despite their significant contribution, these organisations have faced legacy issues such as outdated technology, inefficiencies, and supply chain constraints, limiting their ability to meet demands.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.