The Indian Army plans to end imports of ammunition starting in the financial year 2025–26, transitioning entirely to domestic sourcing. According to Army officials, Indian manufacturers have scaled up production to meet nearly all requirements.
Major General V.K. Sharma, Additional Director General (Procurement), stated that the Army has identified local sources for approximately 150 of the 175 types of ammunition it uses. “In FY 2025–26, 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,” he said at a seminar hosted by the PHD Chamber of Commerce and Industry.
The Army currently spends INR 60–80 billion annually on ammunition. This entire demand is now expected to be met by Indian suppliers. The implementation of a phased negative import list has already reduced the share of foreign-sourced ammunition to 5–10 percent of total purchases.
The domestic supplier base includes corporatised ordnance factories and several private-sector companies that have established new ammunition production facilities in recent years.
Maj Gen Sharma also noted that with planned capacity expansion, Indian companies could target a share of the global ammunition market—estimated at over USD 30 billion. He suggested that Indian manufacturers could potentially capture 5–10 percent of this market within the next four to five years, with long-term aspirations of reaching 25–30 percent.
The initiative is part of a broader national policy to expand domestic defence manufacturing and reduce reliance on imports. The Indian Army, as the land-based arm of the Indian Armed Forces, has increasingly engaged with Indian defence companies to diversify sourcing and enhance supply chain resilience.
