With geopolitical conflicts and military spending on the rise, the global ammunition demand is expected to increase to ₹1,84,092 crores ($22.0 billion) by the 2032. In 2023, the global demand for ammunition was pegged at ₹1,29,260 crores ($15.5 billion). 

The Indian ammunition market, which is over five per cent of the global ammunition industry, is expected to increase to around ₹12,000 crore ($1.4 billion) by the year 2032, said the KPMG and FICCI authored ‘AMMO India 2024 Report’. 

India, pointed out the report, is set to redefine its position in the ammunition market, which is currently estimated to be worth ₹7057 crore ($844 million).

Thee AMMO report revealed that the Indian ammunition industry has traditionally been dominated by 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Despite their significant contribution, these organisations have faced legacy issues such as outdated technology, inefficiencies, and supply chain constraints, limiting their ability to meet demands.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. And, in response to the increasing demand and supply-demand gap, the sector has seen a surge in investments from both domestic and international players.

Further, liberalisation of defence production policies and initiatives like ‘Make in India’ have played a crucial role in attracting private sector participation, the KPMG report noted.

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.”

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