The Make-in-India initiative, a flagship program that promotes domestic production, looks to be producing favourable effects in the defence sector. The Indian Army has announced intentions to dramatically reduce its reliance on imported ammunition, with the objective of reaching 100% self-sufficiency by the next fiscal year.

Achieving Self-Reliance: Make-In-India Initiative Bolsters India's Ammunition Production

Major General V K Sharma, ADG (Procurement) of the Indian Army, confirmed the developments. "In the next financial year (2025-26), we will not import any foreign ammunition, with the exception of very small quantities where domestic production might not be economically feasible," he stated.

According to the Stockholm International Peace Research Institute (SIPRI), this step is a watershed moment for India, which has long been the world's top military importer.

Make-In-India
Source: The Economics Time

The Indian Army's yearly ammunition procurement budget is between Rs 8,000 crore and Rs 6,000 crore, and switching to domestic suppliers is projected to considerably enhance the Indian military sector.

The "positive indigenisation lists" compiled by the Ministry of Defence (MoD) aided the initiative's success under Make-In-India. These lists feature items that India has the ability to produce domestically, thus forbidding imports. Using this method, Indian manufacturers have successfully replaced foreign suppliers for over 150 of the Indian Army's 175 ammunition kinds.

Make-In-India
Source: DDP

The change to local production is not only driven by state-owned enterprises. The corporatization of Ordnance Factory Boards in 2021, together with the rise of private producers, as part of the Make-In-India initiative. Private companies have created ammunition parks across the country, boosting domestic production capacity.

Adani's launch of Asia's largest ammunition complex in Kanpur earlier this year (February 2024) is one significant illustration of this trend. This facility is anticipated to manufacture a wide range of ammunition for India's security forces, such as artillery rounds, rockets, and various caliber bullets.

The Make-in-India initiative's success goes beyond munitions manufacture. Tata began production of the Airbus C-295 cargo aircraft in February 2024, marking India's entry into the private aircraft manufacturing sector alongside state-run Hindustan Aeronautics Limited.

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