Global Ammunition Market Trends and Investments | How India is Emerging as a Powerhouse in the Coming Days
RELEASE DATE: Aug 2024 Author: Spherical Insights Request Free Sample
Ammunition is a device that can be discharged from a firearm, like a projectile or explosive. The components consist of the propellant, a projectile, and a primer that lights the propellant. The market is driven by the increasing procurement of ammunition by defense forces, border security forces, and local enforcement agencies in response to rising terrorist activities, political unrest, and geopolitical tensions.
The ammunition sector in India is experiencing quick growth and creativity, establishing itself as a key contender internationally. The expansion is propelled by a mix of strategic goals, technological progress, and growing geopolitical conflicts. India is asserting its power in the worldwide ammunition market.
Strategic Initiatives for Self-Reliance
- Boosting Domestic Production: India's push for self-sufficiency is demonstrated through a significant deal inked on December 15, 2023. The government's Defence Department signed a contract worth RS 5,336.25 crore with Bharat Electronics Limited (BEL) for manufacturing electronic fuzes. These detonators are essential parts for medium to heavy calibre artillery that improve the Indian Army’s operational abilities. This agreement backs the 'Self-reliant India' initiative, with the goal of decreasing dependence on imports and strengthening local manufacturing. BEL will produce these fuzes at its Pune factory and a new facility in Nagpur, generating substantial job prospects and engaging Indian businesses, including MSMEs.
- Enhancing Defense Budget and Capabilities: The defense budget of India plays a crucial role in driving the growth of its ammunition market. In the fiscal year 2024-25, the defense budget has risen to INR 6,21,540 crore (around USD 72.1 billion). This increase signifies a 4.72% growth from the prior year and highlights India's dedication to improving its defense capabilities, such as ammunition reserves.
The report provides a summary of the India top trends and future prospects for the India ammunition market based on historical data sets (current trends, industry statistics, and emerging trends shaping the ammunition industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global ammunition trends and future prospects for India regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions.
Technological Advancements and Innovations
- Advanced Ammunition Systems: The Indian ammunition sector is utilizing technological innovations to improve its products. For instance, Bharat Electronics has engaged in a trilateral agreement to create indigenous ammunition, such as 30 mm and 40 mm rounds. This partnership demonstrates India's emphasis on incorporating cutting-edge technologies into its weapon systems.
- Intelligent Ammunition: In February 2024, the Indian Institute of Technology Madras partnered with Munitions India to create 155 mm smart ammunition. This updated ammo offers 50% better precision and an extended range than current shells, showing India's dedication to enhancing its military equipment's efficiency and accuracy.
Market Expansion and Global Influence
- Reducing Import Dependency: The Indian Army plans to stop importing ammunition by 2025-26. India is establishing itself as a significant global ammunition supplier by finding local sources for almost 150 out of the 175 types it uses. This change will not just improve national security, but also enable India to gain a portion of the global ammunition market.
- Defense Production and Export Growth: India's clear emphasis on enhancing defense manufacturing and exports is apparent through numerous efforts. 27.67% of the defense budget is dedicated to updating and increasing ammunition production facilities through a significant investment in capital funds. This dedication is anticipated to enhance India's position in the worldwide ammunition market.
Key Players Driving the Industry
- Ordnance Factory Board (OFB): The OFB, which is now a component of the recently created Ordnance Directorate, has a vital role in manufacturing ammunition. The OFB, with its factories located throughout India, plays a crucial role in providing different kinds of ammunition to the Indian Armed Forces, thus making a significant contribution to national security.
- Bharat Electronics Limited (BEL): BEL plays a crucial role in the development of advanced ammunition components and systems. Its knowledge in defense electronics strengthens India's ammunition capabilities, bolstering the nation's autonomy in military gear.
- Defence Research and Development Organisation (DRDO): DRDO is leading the way in the development of advanced ammunition systems. Contribution such as precision-guided munitions and other advanced ordnance enhance India's defense capabilities and operational readiness.
Recent Developments and Future Prospects
India’s ammunition industry is evolving rapidly, with several recent developments highlighting its growth trajectory:
- Partnerships for Innovation: in July 2024, current partnerships, like the collaboration between Bharat Electronics and Rosoboronexport, demonstrate India's emphasis on incorporating cutting-edge technologies into its weapons systems.
- Self-Sufficiency Goals: in May 2024, the Indian Army's aim to stop importing ammunition by 2025-26 shows a major move towards self-sufficiency, which is expected to boost India's presence in the global market.
- Technological Breakthroughs: in February 2024, Developments such as the 155 mm smart ammunition show India's dedication to improving its military technology and increasing the efficiency of its ammunition.
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