How small arms production advances India’s defence ecosystem

India’s defence manufacturing sector is seeing massive growth, with a clear focus on becoming self-reliant. With national security becoming a bigger concern, especially in areas like Kashmir and Arunachal Pradesh, there is an urgent need for top-quality, locally made defence equipment. The government is fully backing this shift with substantial budget increases and policies that encourage local production rather than relying on imports.

India’s defence spending

India’s defence budget is set at $74.7 billion, positioning the country as the fourth-largest spender on defence globally in 2024. This move towards strengthening national security is evident in the growing number of licences granted to companies in the defence sector, which stood at 606 till April 2023. More importantly, defence exports reached $2.63 billion in FY23-24, a solid 32.5 per cent increase from the previous year. These numbers clearly reflect the push towards becoming more self-sufficient.

Locally made small arms and ammunition

Small arms manufacturing is a big part of this transformation. The country needs ammunition—things like 5.56mm, 7.62mm, and 9mm rounds—critical for both the military and law enforcement. The demand for locally made ammunition has grown steadily, and companies across India are stepping up to meet that need. From the defence corridors in Uttar Pradesh and Tamil Nadu, local manufacturers are not only focusing on domestic requirements but are also eyeing international markets. It’s a shift that positions India as both a consumer and a potential exporter of high-quality, reliable arms.

Atmanirbhar Bharat and Beyond

The government is also making huge strides toward indigenizing the production of defence goods. Through the Atmanirbhar Bharat initiative, more than 10,000 products have already been indigenized, and the SRIJAN portal lists over 34,000 items. This kind of transparency is essential in getting local businesses on board and ensuring a future where India does not have to rely on foreign supplies.

Opportunities in India’s defence sector

India’s defence sector is set to see orders worth $138 billion between FY24 and FY32, driven by rising demand for defence equipment, technology, and services. This presents significant opportunities for companies involved in defence production and technology development, according to the ‘India Defence’ report by Nomura. The growth is credited to higher defence budgets, modernisation plans and the government’s push for local manufacturing through initiatives like “Make in India.”

What is really interesting is how companies are handling production. Many small arms manufacturers are taking full control—from sourcing materials to the final product. This not only ensures that quality is tightly controlled, but it also reduces the reliance on external suppliers, making the whole process much more efficient. Plus, with global shortages of ammunition, India’s manufacturers are in a good position to fill that gap, both at home and abroad.

Investments in artillery and missile systems

Spending on missiles, artillery and gun systems is expected to hit $21 billion, reflecting India’s focus on boosting its artillery and missile strength. The India Defence report also notes a sharp rise in defence exports, reaching $29 billion, with growth likely to keep climbing.

Another exciting development is the rise of defence tech startups. These new players are creating cutting-edge technologies that are helping India modernize its defence sector. With nearly 200 startups in the field, these innovators are providing solutions that push the industry forward. Their contributions are helping to make Indian-made defence products competitive on the global stage.

A bright future

India’s defence sector is growing with small arms production playing a key role in securing borders and boosting its global standing. With a focus on innovation, quality and self-reliance, India is meeting its own needs while contributing to the global defence market. The progress is evident and the impact is now perceivable.

The author Founder and MD, Vijayan Trishul Defence Solutions. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.