Introduction
In a significant development, the Indian Army is gearing up to halt all ammunition imports starting from the upcoming financial year. This bold move comes as a testament to the burgeoning capabilities of the domestic industry, which has scaled up its production to fulfill all requisites. Notably, India's ammunition sector is not just striving to meet domestic demands but is also eyeing a substantial share of the global market, a senior procurement officer has said.
An Indian Army Soldier holds a Sniper as he takes position at a Forward Post at LoC Line Of Control in Uri, Baramulla, Jammu and Kashmir, India on 02 April 2022. © Nasir Kachroo/Getty Images
Indian Army’s Statement
The army, which was heavily dependent on imports to meet annual requirements till a few years ago, has already found indigenous sources for close to 150 of the 175 types of ammunition it uses while it aims to completely cut off imports by 2025-26. "In the next financial year, we will not have any import of ammunition. Other than in cases where the quantity is too low and it is not economical for the industry to manufacture them," Maj Gen VK Sharma, ADG (Procurement), Indian Army said.
The officer, who was speaking at a seminar on Ammunition Production organised by the PHD Chamber, said that the army currently is purchasing ₹6000-8000 crore worth of ammunition annually, all of which will now come from Indian sources.
"As far as world demand is concerned, a market worth over $30 billion is available. At present not even 1% is coming from Indian sources. We have the capacity to come to 5-10% in the next 4-5 years and maybe 25-30% in the future," Maj Gen Sharma said.
India’s Arms Imports: SIPRI Report
According to the Stockholm International Peace Research Institute’s (SIPRI) Trends in International Arms Transfers 2022 report, India maintained its position as the world’s largest arms importer from 2018 to 2022. During this period, India accounted for an 11% share of total global arms imports, solidifying its status as the leading importer of major arms. Remarkably, India has held this top importer position consistently from 1993 to 2022.
Despite a notable 11% decline in arms imports between 2013-17 and 2018-22, India retained its position as the largest importer. Additionally, India emerged as the third-largest arms supplier to Myanmar during this timeframe, contributing to 14% of its imports, trailing behind Russia and China.
India Becoming Self-reliant in Weapon Production
Chief of the Army Staff (COAS) General Manoj Pande recently stated that the Indian Army is changing from being a buyer of weapons to becoming a partner of Indian industry in development and production.
The concept of “national champions” has been adopted in order to build up weapons suppliers with national and global scale, he said.
COAS Manoj Pande’s remarks came while he was addressing the national leadership conclave of the All India Manufacturers’ Association (AIMA) in Delhi.
The COAS stated that the Indian defense industry is investing in research and advanced production techniques and that the forces are supporting them by providing a viable market.
He mentioned that about 340 indigenous arms producers across the country have been awarded defense contracts worth Rs 2.6 lakh crore.
Moreover, Positive indigenization lists, outlined by the Indian Ministry of Defence (MoD), specify items that India is capable of domestically producing and therefore will not import. The surge in domestic manufacturing capacity is attributed to the establishment of new ammunition plants by various private sector enterprises in recent years, alongside the recent corporatization of Ordnance Factories.
A significant development in this trajectory occurred with the inauguration of Asia's largest ammunition complex by Adani in Kanpur two months ago, in February 2024. This facility will produce a variety of rockets, missiles, small- and large-caliber ammunition, and artillery rounds for the security forces.
Furthermore, Tata marked a pivotal moment by becoming the first private aircraft producer in India, aside from the government-owned Hindustan Aeronautics Limited, commencing assembly of the Airbus C-295 transport plane. The overarching goal is to completely cease ammunition imports by 2025-26.
New Delhi has over the last eight years filled its stocks of spare parts and ammunition under several rounds of emergency procurements. The Defense Ministry gave the military financial powers for these procurements following a terrorist attack in Uri, Jammu and Kashmir in 2016, airstrikes against Pakistan in 2019, and skirmishes with Chinese troops in eastern Ladakh in 2020, The Hindu reported last year.
According to the paper, the army has prepared a long-term road map to procure ammunition for the next ten years amid a continuing border standoff with China and the conflict between Russia and Ukraine, since most of the Indian Army’s armored fleet is of Russian-origin. The plan aims to “minimize imports,” have multiple sources of supply, and possess “indigenous manufacturing capability.”
Surge in Defense Exports
The landscape of India's defense sector is undergoing a remarkable transformation, thanks to concerted efforts towards defense reforms. This shift is evidenced by a surge in industrial licenses issued for defense manufacturing and a notable decrease in arms imports. India's reliance on imported defense hardware has significantly diminished, accompanied by an impressive nearly 23-fold increase in defense exports since 2013-14.
In the fiscal year 2022-23 alone, defense exports soared to a record high of Rs. 15,920 crore, spanning across 85 countries. These exports encompass a wide array of offerings, including BrahMos missiles, Akash missile systems, radars, simulators, armoured vehicles, and artillery guns. Moreover, the substantial rise in indigenous defense equipment production, reaching Rs. 1 lakh crore in 2022-23, underscores the government's steadfast commitment to fostering indigenous research and development in the defense sector.
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