India's defense sector has embarked on a significant journey towards self-reliance with a recent announcement by Major General V K Sharma, ADG (Procurement) of the Indian Army. Starting in the financial year 2025-26, the country will cease importing any foreign ammunition, except in cases where the quantities are too small to be economically viable for domestic production.
This decision is in line with the objectives of the Make-in-India initiative, which aims to boost indigenous manufacturing and reduce dependency on foreign imports.
Historically, India has been the world's largest importer of arms, according to the Stockholm International Peace Research Institute (SIPRI). However, this shift towards local sourcing represents a significant policy transformation. Indigenous suppliers will now cater to the requirements for 150 out of 175 types of ammunition used by the Indian Army.
This strategic move is expected to substantially reduce India's annual expenditure on ammunition imports, which typically ranges between Rs 8,000 to Rs 6,000 crore.
The transition to local sourcing has been facilitated by the Ministry of Defence's publication of five positive indigenization lists. These lists identify items that can be produced domestically and are therefore excluded from import. This proactive approach has encouraged greater participation from the private sector in defense manufacturing.
In a notable development preceding this announcement, the Adani Group inaugurated Asia’s largest ammunition complex in Kanpur in February 2024. This state-of-the-art facility is poised to produce a wide range of munitions, including artillery shells, rockets, and missiles.
Similarly, the Tata Group has made significant strides by commencing assembly operations for the Airbus C-295 transport aircraft. This achievement positions the Tata Group as India’s first private aircraft manufacturer alongside the state-owned Hindustan Aeronautics Limited.
These advancements underscore the growing momentum in India's defense production capabilities, signaling the country's commitment to enhancing its military autonomy and strengthening its industrial defense base.