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Indian Army To Indigenize 100% Ammunition Procurement By FY 2025-26

Updated: May 08, 2024 05:45:12pm

Indian Army To Indigenize 100% Ammunition Procurement By FY 2025-26

New Delhi, May 8 (KNN) The Indian Army is set to cease importing ammunition from the next financial year, as the domestic industry has bolstered its production capabilities to meet the military's demands, according to a senior procurement officer.

Major General V.K. Sharma, Additional Director General (Procurement) of the Indian Army, stated that while the army previously relied heavily on imports to fulfil its annual ammunition requirements, it has now identified indigenous sources for nearly 150 of the 175 types of ammunition it utilises.

The goal is to eliminate all ammunition imports by 2025-26.                   

"In the next financial year, we will not have any import of ammunition, except in cases where the quantity required is too low for domestic production to be economically viable," Maj Gen Sharma said during a seminar on ammunition production organised by the PHD Chamber of Commerce and Industry (PHDCCI).

Currently, the army procures ammunition worth Rs 6,000-8,000 crore annually, all of which will now be sourced from Indian manufacturers.

Through a gradual implementation of a negative import list, only 5-10 per cent of the army's ammunition requirements are currently met by foreign suppliers.

In addition to the recently corporatized Ordnance Factories, several private sector companies have established new ammunition plants across the country in recent years, contributing to the increased domestic production capacity.

Maj Gen Sharma expressed confidence that, given the upcoming capacity expansion, Indian companies could emerge as significant players in the global ammunition market, which is estimated to be worth over USD 30 billion.

He projected that Indian sources could capture 5-10 per cent of the global market within the next four to five years, with the potential to reach 25-30 per cent in the future.

The Indian Army's shift towards self-reliance in ammunition production aligns with the government's broader efforts to promote domestic manufacturing and reduce dependence on imports in the defence sector.

(KNN Bureau)


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