“Dependence on imports creates vulnerability to the supply chain, hence indigenisation is the way forward”, says Shri Anurag Bajpai, Additional Secretary Defence Production, Ministry of Defence, Government of India

PR No – 82

7th May, 2024

New Delhi


“Dependence on imports creates vulnerability to the supply chain, hence indigenisation is the way forward”, says Shri Anurag Bajpai, Additional Secretary Defence Production, Ministry of Defence, Government of India


Defence industry is strengthening to produce ammunition due to supply chain disruptions. We are dependent on imports for critical raw materials, which affect indigenous production capabilities. The current geopolitical crises in defence all over the globe are hinting at ramping up ammunition production, said Shri Anurag Bajpai, Additional Secretary Defence Production, Ministry of Defence, Government of India, while speaking at PHDCCI’s Conference on “Ramping up Ammunition Production in India to meet Global Demand” held today at Hotel Shangri la, New Delhi on the theme, “Amplifying India’s Ammunition Production: Initiatives & Opportunities”

Mr. Bajpai further added, “I see many industry players have taken licenses, particularly for armament ammunition, but products have not been made. He informed that not less than 40 licenses have been given in the ammunition sector in the last few years. Hence, he urged the industry to go ahead as there is a need to ramp up internal capabilities, as the government has already permitted.

He informed, the Government also waived off quality assurance charges and called it an industry-friendly initiative. As a government, we are always open to bringing new initiatives, and as policies are dynamic in nature, he urged everyone to come up with further suggestions.

He added, access to critical technology is very restricted and dependence on imports creates vulnerability to the supply chain, that is why we are encouraging indigenization, and this is what we are trying to intensify. Hence, there is a need to focus on the planning process and maintaining our inventory. There’s also a need to monitor the consumption pattern, as it should not go into the wrong hands. Also, agility to change as the technology changes every four years, and the industry needs to work constantly. Here start-ups can come into the picture, hence, the industry needs to collaborate with startups for this.

Also, a skilled workforce goes hand in hand with the need to look at the training part. Regarding military standards, he said compliance with stringent policy checks is also where the industry needs to focus. The need for strategies to ramp up, as well as the upgradation of current infrastructure, is crucial. Promotion of R&D and skill sets to optimize resource allocations is also important, added Mr. Bajpai.

He further informed that in the defence, we are coming up with defence testing opportunities for MSMEs and startups, where ammunition is one part of it, and it will be available in the next 1-2 years. In export, the challenge of end-user certificate there is a need to come up with the entire chain of end-users and ensure it will not export to any other country, as there needs to be a balance between diplomacy and exports. With this, security of premises, manual provision, and cybersecurity should also be focused on while ramping up.  While concluding he said, we are with the industry and recommendations emerging from this conference would be taken into further policy reforms.


Vice Admiral, Sanjay Vatsayan, AVSM, NM, Deputy Chief of Integrated Defence Staff (DCIDS), (PP&FD), Ministry of Defence, Govt. of India  said from current global scenarios, there are two lessons we’ve learned. One is no operation or conflict will be short, and second is self-reliance. One must look into self-reliance as one cannot fight war solely on the supply chain. Therefore, it lead to an opportunity to have a time-bound plan. He said issues addressed clinically in the last few years, and the government is nimble on this with a variety of policies and initiatives. Further he emphasised on need to ensure to take advantage of intellectual properties present in the country, and more investment in R&D besides ramping up production as this is the ideal opportunity.


Air Marshal Ashutosh Dixit, AVSM, VM, VSM, Deputy Chief of the Air Staff, Indian Air Force spoke on air armament and said there are high-technology items in air armament and the development of air ammunition is a costly affair as a lot of testing is required. He further stressed making air armament integrated with all types of aircrafts making it more effective. And said the private players can explore the opportunities in components and sub-components. As air armament is a niche area of technology, there is a lot of scope available for private in subcomponents if not in actual products.


Shri Rudra Shriram Chair, Defence & HLS Committee, PHDCCI & President, DCM Shriram Industries Ltd. said, the Defence and aerospace sector plays a pivotal role in India’s economic and strategic landscape. With increasing emphasis on indigenization, innovation, and self-sufficiency, the Indian Defence industry is poised for significant growth opportunities. Ramping up ammunition production is not just about meeting current demands but also about positioning India as a reliable supplier in the international market.

The journey towards enhancing ammunition production involves a multi-faceted approach, including technology infusion, research and development, collaboration with global partners, skill development, and policy reforms. It requires a concerted effort from government bodies, industry players, academia, and research institutions to create an ecosystem that fosters innovation, efficiency, and competitiveness.


Shri P Upadhyay, INAS Director General of Naval Armament (DGONA) said a nation has to ensure that its defence and security capabilities are non-negotiable and the need for robust ammunition infrastructure to support defence forces. Even after 75 years of independence, we are still dependent on imports, which speaks volumes. The ongoing conflicts have already had an adverse impact, thus we must reduce our dependence and focus on fostering production, which will boost tech innovation. He added, while enhancing defence testing infrastructure, niche labs made available to private players. He further emphasized on PPP to pace up innovations in ammunition manufacturing as there’s immense potential in skill development and job creation.


Maj Gen V K Sharma, SM, VSM Additional Director General (Procurement), MGS Branch deliberated on the user perspective and procurement angle. He said normally, the buyer decides ammunition but here the seller is deciding the price, cost, timeframe, and to whom they want to sell. He said it can’t be a better opportunity for the industry. He further discussed on the PM’s call for self-reliance in all manufacturing processes, especially defence manufacturing. he also emphasized on R&D and informed that the demand is ever-increasing with government policies. Said indigenization of ammunition in the next couple of years will have zero imports to meet our critical manufacturing requirements of ammunition. He further added the private sector has intent and capability to meet the demand. What they need is the right direction in the market and demand and to look out for the gaps that can be covered and building capacity.

Shri Hari Mohan, IOFS Ex-Chairman & Director General, Indian Ordnance Factories Ministry of Defence, Government of India, in the current global war scenario, the lesson is that we may have a lot of air attack capabilities, but ultimately, the decisive position takes place on the ground. Various wings of the army fight on the ground with ammunition. There’s a real global shortage of ammunition even components of ammunition are also getting imported. Therefore, there are a lot of capabilities that India has, and it should take advantage of these opportunities for the country amidst the growing demand for ammunition.

Further talking about the demand for drones to deliver the ammunition, technology demand, the requirement of casting chemicals, explosives compound, safe packaging,  he said there are a variety of opportunities available. But one must remember it requires multiple technologies, as military standards are highly optimized. He said there’s a lot of expertise available in the country.


Col. K V Kuber (Retd.), Indian Army Veteran Director – Aerospace & Defence, Ernst and Young LLP, while referring to the geopolitical conflicts, especially the Ukraine-Russia war, Gaza, Armenia, etc, said at this point, the ammunition is being dispersed faster than food and water. The shortage of ammunition contributed to the withdrawal of Ukraine in one of the war zones. Even Russia is also importing ammunition. The cost of war is high and now there’s a need for investment in sophisticated ammunition. . Also, technology in ammunition storage, we need to adopt it. He further discussed the Indian army’s 10-year annual plan, where 85% has been indigenized till now. He said there’s a need for Indian players. We need to stock up for domestic needs and our customers. Looking at the current war scenario, the wars are not short wars hence, it makes it more crucial.

Shri M K Gupta, Co-Chair, PHDCCI Defence & HLS Committee & Managing Director, Starwire India Ltd. presented the vote of thanks and further urged the secretary for a longer duration of the testing facility to meet the private sector demand. The Session was moderated by Dr. Nasir Jamal, Senior Secretary & HoD ( Defence & HLS), PHDCCI

There was also an important technical session on “Challenges & Strategies – Accelerating Ammunition Production in India for Local and Global RequirementsThe Session was moderated by Col. Ramit Arora (Retd.) Founder & CEO, Aeroshul Technologies Pvt. Ltd. and saw the presence of eminent Panelists such as Rear Admiral Brijesh Vashishta, Director General of Naval Armament Inspection (DG NAI), Shri B. P. Singh, INAS Principal Director of Naval Armament Directorate General of Naval Armament Naval Hq, Min of Defence, Brig. Ranbir Singh Salaria Brig QA (Amn) HQ Directorate General of Quality Assurance (DGQA), Group Captain D. Arun, VSM Gp. Capt. Weapons (Technical) Directorate of Offensive Operations Air Headquarters, Shri Harsh Gulati, IOFS Joint General Manager, Munitions India Ltd. (MIL), Maj. Gen. Anil Oberoi (Retd.) President, SMPP, Shri Ashok Wadhawan Joint President & Head Land System, Adani Defence and Col. Umang Trehan (Retd.) Vice President – New Businesses, Jindal Group.


The event also witnessed release of a Knowledge paper titled, “Ramping up Ammunition Production in India to meet Global Demand.”


The Event was sponsored by SMPP, Starwire India Ltd. & DCM Shriram Industries Ltd. and was supported by PHDCCI annual sponsors, DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd;  Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram;  R E Rogers; Trident Group; Ajit Industries Pvt Ltd;  Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd.;  Hindware Sanitary; Jindal Steel;  Modern Automobiles;  P S BEDI & Co.




Warm Regards,

Media Division

PHD Chamber of Commerce and Industry