India Large Caliber Ammunition Market By Caliber Type (40 - 60 mm, above 60mm), By End User (Naval Forces, Ground Forces), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

India Large Caliber Ammunition Market was valued at USD 276.04 million in 2025 and is expected to reach USD 319.19 million by 2031 with a CAGR of 2.45% during the forecast period. The India large caliber ammunition market is witnessing sustained expansion as armed forces emphasize modernization of artillery and armored platforms. According to the Ministry of Defence (MoD, India, 2024), India’s defense expenditure reached INR 6.15 trillion (approx. USD 74 billion) in 2023–24, with a significant portion allocated to artillery and ammunition modernization programs.

Procurement programs have expanded to cover advanced tank ammunition, long-range artillery shells, and mortar rounds designed for greater precision and destructive capability. Increasing defense budgets are supporting this demand, while ongoing border security requirements amplify the necessity for replenishment of stockpiles. The market is also influenced by technology transfer initiatives and defense industrial collaborations that encourage localized production.

Growth is being fueled by the introduction of next-generation munitions with programmable fuzes, extended range capabilities, and improved lethality. These innovations are transforming conventional calibers such as 155mm and 125mm into more adaptable and effective systems. Another driver is the need to maintain balanced inventories for both training and war-reserve requirements. The emergence of private sector manufacturing in ammunition also fosters supply diversity and resilience, ensuring better availability across the armed forces.

Market Drivers

Defense Modernization Programs

The steady modernization of artillery systems, tanks, and naval platforms is a major driver for large caliber ammunition in India. Ongoing acquisition of advanced weapon systems requires compatible, high-performance munitions that can deliver extended range, higher accuracy, and increased lethality. Modernization is not limited to frontline forces but also extends to training systems, which ensures sustained consumption of ammunition across categories. The replacement of outdated stockpiles with technologically advanced rounds reinforces the need for large caliber munitions. This modernization roadmap ensures a long-term supply requirement, creating consistent demand for both conventional and smart ammunition variants across multiple defense segments. According to the Defence Research and Development Organisation (DRDO, India, 2023), India has successfully tested and deployed over 12 new artillery shells and ammunition types in 2023, supporting modernization of large caliber weapons.

Rising Defense Budget Allocation

India’s steady increase in defense budgets fuels procurement of heavy caliber ammunition across the armed forces. According to the Stockholm International Peace Research Institute (SIPRI, 2023), India was the world’s second-largest arms importer from 2019–2023, importing over 9.8% of global arms, including large caliber ammunition for artillery and armored vehicles. Expanding financial support has enabled acquisition of more sophisticated munitions, particularly for artillery and armored divisions. Allocated budgets not only fund direct ammunition purchases but also infrastructure improvements for storage, handling, and testing facilities. This allocation promotes stockpile strengthening to meet training and operational requirements. Increased funding also accelerates the development of indigenous manufacturing lines, reducing dependence on imports. The rise in budgetary support enhances procurement cycles, ensuring the armed forces have reliable access to advanced, high-volume ammunition supply during both peacetime and conflicts.

Border Security Requirements

Continuous operational deployments along high-tension borders sustain demand for artillery, tank, and mortar ammunition. Regular exercises and live firing drills necessitate large quantities of training rounds, while combat readiness requires maintenance of significant war reserves. According to the Small Arms Survey (2023), India maintains an estimated 3.4 million licensed firearms, with defense and paramilitary forces consuming a substantial share of large caliber ammunition for training and operational readiness.

Security conditions make replenishment cycles faster, ensuring steady market demand. The requirement for preparedness against multiple threats across land and sea borders amplifies ammunition consumption. This need is further strengthened by policies that mandate keeping reserves at prescribed levels. As regional tensions remain persistent, border security remains a consistent factor supporting long-term growth of the large caliber ammunition market in India.

Indigenization and Self-Reliance Initiatives

Government focus on indigenization under initiatives like "Make in India" creates significant opportunities for local large caliber ammunition production. Domestic manufacturing not only reduces import dependency but also provides economic benefits through technology transfer, employment, and supply chain development. Indigenous production enhances resilience during supply disruptions and strengthens defense autonomy. Policies supporting domestic industry participation ensure more investment in advanced ammunition research and development. By fostering joint ventures and public-private partnerships, India is building a long-term capability to design, test, and manufacture complex ammunition types locally. This push for self-reliance significantly drives market expansion during the forecast period.

Technological Advancements in Ammunition

The integration of new technologies into large caliber munitions enhances range, precision, and adaptability, making them more effective across varied combat scenarios. Features like precision guidance kits, modular projectiles, and programmable fuzes are reshaping traditional calibers into more versatile solutions. Enhanced lethality combined with reduced collateral damage makes advanced ammunition more desirable for modern warfare. Continuous innovation improves compatibility with existing artillery and tank systems, ensuring smooth integration into current inventories. These advancements create strong demand from armed forces seeking cost-efficient yet powerful solutions. The ongoing evolution of ammunition technology provides a vital push for the Indian market’s growth.

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Key Market Challenges

High Production Costs

Manufacturing large caliber ammunition requires specialized materials, advanced machinery, and rigorous quality testing, which significantly increase production costs. Rising input prices for metals, explosives, and propellants further escalate expenses. These high costs often limit procurement volumes and place pressure on defense budgets, especially when balancing spending across multiple modernization projects. Cost escalation also restricts private sector participation, as only firms with sufficient financial capacity can sustain operations. This financial barrier slows expansion of production capabilities and creates challenges for meeting long-term demand. Controlling costs while maintaining high standards remains one of the toughest challenges for the industry.

Supply Chain Constraints

The supply chain for large caliber ammunition is complex, involving specialized inputs such as propellants, casings, and explosives sourced from multiple vendors. Any disruption in availability of these materials can delay production schedules. Dependence on imported components for certain high-end ammunition types makes the supply chain vulnerable to geopolitical tensions and trade restrictions. Transportation and storage of hazardous materials add another layer of complexity, requiring strict compliance with regulations. Bottlenecks in logistics or shortages in raw materials create risks of delayed delivery to armed forces, making supply chain reslience a persistent challenge for the sector.

Quality Assurance and Standardization

Ensuring consistent quality across large-scale ammunition production is difficult, particularly when multiple manufacturers are involved. Variations in manufacturing processes, material sourcing, or assembly precision can impact reliability and performance of ammunition. Strict testing and certification procedures are required to validate each batch, which increases time and costs. Inconsistencies can also undermine operational effectiveness during critical missions. Standardization across different calibers, platforms, and procurement programs remains a challenge due to evolving requirements. Maintaining high quality and interoperability while scaling up production capacity is a continuous hurdle that the Indian ammunition industry must address for sustainable growth.

Key Market Trends

Precision-Guided Ammunition

A growing trend in India’s large caliber ammunition market is the integration of precision-guided technology into conventional shells and tank rounds. By using GPS and laser-based guidance systems, large caliber munitions achieve greater accuracy with reduced collateral damage. This makes them highly effective in complex combat scenarios where precision is critical. Precision-guided ammunition also enhances cost efficiency by reducing the number of rounds required to neutralize targets. With rising interest in modern battlefield technologies, the demand for guided artillery and tank ammunition is expected to increase, transforming conventional firepower into highly accurate, adaptable, and mission-specific solutions.

Modular Ammunition Design

The adoption of modular ammunition design is becoming more prominent as armed forces seek versatile solutions. Modular systems allow a single round to be adapted with different fuzes, warheads, or propulsion units, enabling tailored performance for multiple missions. This flexibility reduces logistical burdens and simplifies inventory management. For example, artillery shells with interchangeable components can be configured for training, long-range strikes, or anti-armor missions. This trend reflects the shift toward cost-effective solutions that maximize utility from existing platforms. Modular ammunition design ensures scalability, adaptability, and reduced lifecycle costs, making it a significant driver of future procurement strategies.

Smart Fuze Integration

Large caliber ammunition is increasingly being equipped with advanced fuzes capable of multiple modes, such as airburst, point-detonating, or delayed impact. These smart fuzes increase effectiveness across different battlefield conditions, enhancing lethality and adaptability. Integration of programmable fuzes enables forces to adjust performance based on mission objectives without changing the core ammunition. This reduces the need for multiple stockpiles of specialized rounds and streamlines logistics. The move toward smart fuzes highlights the push for technology-driven solutions that enhance the tactical flexibility of traditional calibers, allowing Indian armed forces to maximize capability from their existing artillery and tank platforms.

Emphasis on Indigenous R&D

There is a growing focus on developing advanced ammunition technologies through domestic research and development efforts. Indian defense institutions and private players are increasingly investing in creating indigenous solutions for tank rounds, artillery shells, and naval ammunition. This trend is aligned with government policies promoting self-reliance and technology sovereignty. Indigenous R&D not only reduces dependence on foreign suppliers but also builds long-term capabilities in critical defense technologies. By fostering collaboration between laboratories, armed forces, and local manufacturers, this trend strengthens the innovation ecosystem. As a result, India’s large caliber ammunition sector is becoming more technology-driven and self-sustaining.

Segmental Insights

Caliber Type Insights

In the India large caliber ammunition market, the segment comprising calibers above 60mm holds the dominant position in 2024, driven by its extensive deployment across artillery systems, main battle tanks, and advanced armored platforms. This segment supports the core of India’s strategic firepower, offering superior range, explosive impact, and precision in high-intensity combat situations. The Indian armed forces’ growing focus on enhancing long-range capabilities and strengthening deterrence postures has significantly boosted the demand for above 60mm ammunition. These munitions are critical for field artillery, self-propelled guns, and naval artillery systems, which are integral to both conventional defense strategies and rapid deployment scenarios across varied terrains.

The expansion of this segment is further supported by increasing defense allocations aimed at modernizing artillery and mechanized infantry units. Government-led initiatives to reduce import dependency and promote indigenous defense production have accelerated domestic manufacturing capacities for large caliber ammunition, making procurement more streamlined and cost-effective. With the induction of advanced platforms such as long-range howitzers and upgraded tank systems, the requirement for compatible, high-caliber ammunition has intensified, reinforcing this segment's market leadership. Large caliber rounds above 60mm are engineered for high-impact operations, enabling deep strike capabilities and effective area denial, particularly in border regions where geopolitical tensions persist.

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Region Insights

In 2024, the northern region holds a leading share due to its direct adjacency to international borders that are frequently under surveillance and operational pressure. With states like Jammu & Kashmir, Punjab, and Uttarakhand forming key defense zones, this region has witnessed heightened deployment of artillery units and armored regiments. The terrain demands high-caliber firepower capable of operating in mountainous and high-altitude environments, making above 60mm ammunition crucial for military readiness and sustained operations. Frequent training exercises, border skirmishes, and operational deployments in this region continue to elevate the demand for large caliber rounds tailored to the challenging geographic and climatic conditions.

Defense installations and forward-operating bases across the northern region have been significantly upgraded, with increased stockpiling and usage of large caliber ammunition to maintain operational preparedness. The constant need for logistical efficiency in transporting and managing ammunition supplies in high-risk zones has encouraged greater procurement and localized production support. Strategic focus on improving mobility and strike capabilities in border areas has further driven investments in advanced artillery systems that rely heavily on large caliber rounds. With the Indian Army maintaining a high level of alertness in the north, the consumption of large caliber ammunition remains steady and mission-critical. 

Recent Developments

• In February 2024, Adani Group announced a $362 million investment to set up two defence factories in Kanpur, Uttar Pradesh, aimed at producing small, medium, and large caliber ammunition. The facilities, spread over 500 acres, are expected to create over 4,000 jobs and manufacture 150 million rounds annually, meeting about a quarter of India’s needs. This initiative supports India’s push for defence self-reliance while also expanding Adani’s role in the sector.
• In March 2025, the Ministry of Defence announced record-breaking growth in India’s defence production, which hit ₹1.27 lakh crore in FY 2023-24, a 174% surge since 2014-15. Exports touched ₹21,083 crore, rising 30 times in a decade and reaching over 100 countries. Driven by Make in India, iDEX, and indigenisation programs like SRIJAN, India now manufactures 65% of its defence equipment domestically, targeting ₹3 lakh crore in production and ₹50,000 crore in exports by 2029.
• Rosoboronexport, part of Russian state corporation Rostec, has launched production of 125 mm Mango armor-piercing tank ammunition in India. Designed for T-72 and T-90 tanks, the initiative strengthens Russian-Indian military cooperation and aligns with India’s Make in India program. Plans include local production of powder to maximize localization. The technology transfer allows India to develop production capabilities domestically and further expand joint military manufacturing.
• On May 22, 2025, Rheinmetall AG and Reliance Defence formalized a strategic partnership for ammunition production and supply. Reliance will provide explosives and propellants for medium- and large-calibre shells and establish a greenfield facility in Ratnagiri, Maharashtra, with annual capacities of 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants. The partnership supports India’s $5 billion defence export goal and strengthens Rheinmetall’s access to raw materials. Reliance’s Dhirubhai Ambani Defence City will host this integrated project, becoming India’s largest private-sector greenfield defence facility.
• In May 2025, Rheinmetall AG and Reliance Defence Ltd signed a strategic partnership focusing on ammunition production and supply. Reliance will provide explosives and propellants for medium- and large-caliber ammunition and establish a greenfield facility in Ratnagiri, Maharashtra, with a capacity to produce 200,000 artillery shells annually. The collaboration secures Rheinmetall’s supply chains, supports India’s defence export target of USD 5 billion, and positions the Dhirubhai Ambani Defence City as one of South Asia’s largest defence projects.

Key Market Players

• Adani Defence & Aerospace
• Advanced Weapons and Equipment India Ltd (AWEIL)
• Bharat Dynamics Limited (BDL)
• Bharat Electronics Limited (BEL)
• Kalyani Group (Bharat Forge Defence)
• Larsen & Toubro (L&T Defence)
• Munitions India Limited (MIL)
• Premier Explosives Limited
• Sandeep Metalcraft Pvt. Ltd
• Solar Industries India Limited

Report Scope:

In this report, the India Large Caliber Ammunition Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         India Large Caliber Ammunition Market, By Caliber Type:

o    40 - 60 mm

o    above 60mm

·         India Large Caliber Ammunition Market, By End User:

o    Naval Forces

o    Ground Forces

·         India Large Caliber Ammunition Market, By Region:

o    North

o    South

o    West

o    East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Large Caliber Ammunition Market.

Available Customizations:

India Large Caliber Ammunition Market report with the given market data, TechSci Research, offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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