India’s Ammunition Market May Hit 1.84 Lakh Cr By 2032: AMMO India 2024 Report

India is poised to make substantial strides in the ammunition market via Indigenous manufacturing, according to the AMMO India 2024 report, a collaborative initiative by KPMG in India and the Federation of Indian Chambers of Commerce & Industry (FICCI).

As per the report, the global ammunition market was valued at Rs 1,29,260 crore in 2023, with heavy calibre ammunition dominating 53.48 per cent of the global demand. Grenades, mines and mortars followed at 23.27 per cent, with medium calibres making up 12.84 per cent.

With ongoing geopolitical conflicts, increased military spending and rising insurgencies, the global ammunition market is projected to grow at a CAGR of 3.95 per cent, reaching Rs 1,84,092 crore by 2032.

India, currently holding a 5.5 per cent share of the global ammunition market, is on a rapid growth trajectory. In 2023, the Indian ammunition market was valued at Rs 7,057 crore. The report anticipates this market will expand at a CAGR of 4.93 per cent, reaching Rs 11,981 crore by 2032. This growth is fueled by strategic initiatives and the pressing need to enhance national security, presenting lucrative opportunities for Indian companies on the global stage.

Traditionally, the Indian ammunition industry has been dominated by government-owned entities, particularly Defence Public Sector Undertakings (DPSUs). However, these organisations have faced challenges such as outdated technology, inefficiencies and supply chain constraints.

In response, there has been a surge in investments from both domestic and international players, driven by the liberalisation of defence production policies and initiatives like ‘Make in India,’ which has encouraged 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."