The Government of India has approved a proposal to allow the private industry to manufacture selected ammunition for the Indian Army.

The request for proposal of the munition manufacturing project has already been issued by the government.

India’s Defence Production Policy focuses on attaining self-reliance in the design, development and production of equipment, weapon systems and platforms for the army.

In addition, the policy aims to provide suitable conditions for private industries across India to contribute to the country’s defence sector.

“In order to pursue the policy, the Indian Government has also taken other measures, including modifications in industrial licensing for the country’s defence sector.”

This will help strengthen the potential of small and medium enterprises (SMEs) supporting defence research and development. It will also fill the shortage of the Indian army’s critical ammunition.

As part of the government’s Make in India initiative, the Defence Production Policy introduced a new category of capital acquisition. It rules that locally designed equipment with a minimum of 40% local content, or other equipment with 60% locally sourced material will be considered for procurement.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In order to pursue the policy, the Indian Government has also taken other measures, including modifications in industrial licensing for the country’s defence sector.

Most components, parts, sub-systems, and testing and production equipment have been eliminated from the defence products list to remove difficulties SMEs may have meeting industrial licences.

Under the new policy, foreign investments in the country’s defence sector of up to 49% are permitted through an automatic process. Investments of more than 49% are processed by the government.