Why an Indian company making artillery cannons for US is big deal

FP Explainers February 21, 2025, 18:45:35 IST

Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge, has signed a Letter of Intent (LOI) with US’ AM General for supplying advanced artillery cannons. This is a ‘historic first’ for an Indian defence manufacturer

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Bharat Forge's subsidiary has signed an LOI with AM General. bharatforge.com
Bharat Forge's subsidiary has signed an LOI with AM General. bharatforge.com

In a big boost for self-reliance in the defence sector, an Indian company is in talks with an American automotive manufacturer to supply indigenous advanced artillery cannons to the United States. Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge, signed a Letter of Intent (LOI) with the US company AM General to provide the weapon.

If the deal goes through, it would be the first time an Indian defence company will supply cannons to the US. After Bharat Forge announced the development, its share price jumped 2.65 per cent to hit an intraday high of Rs 1,103.95 per share on Thursday (February 20).

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Let’s take a look at why the deal would matter to India.

Bharat Forge signs LOI with US’ AM General

Bharat Forge signed an LOI with AM General to supply made-in-India advanced artillery cannons at the International Defence Exhibition & Conference (IDEX 2025) in Abu Dhabi.

Bharat Forge said on X that it is a “historic first” for an Indian defence manufacturer. “This marks the first-ever supply of cannons from an Indian defence manufacturer to the US, a testament to the strengthening bilateral defence cooperation between our two nations,” the company said in a statement.

Baba Kalyani, Chairman & Managing Director of Bharat Forge, called it a “groundbreaking achievement”. “We at KSSL are proud to be the first Indian company to supply cannons to the US. This agreement underscores our capabilities and reinforces our mission to be a leading provider of artillery solutions worldwide. It also highlights the trust and confidence global defence leaders like AM General have in our capabilities,” he said, as per CNBC TV18.

The deal is part of a broader agreement between Bharat Forge and AM General, a global leader in military vehicle platforms. KSSL and the US company will jointly develop next-generation artillery solutions, including mounted, towed, and ultra-light gun systems in both 105mm and 155mm calibres.

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Bharat Forge’s KSSL has produced a range of indigenous weapon platforms, offroad protected mobility solutions and high-technology military items. It boasts expertise in artillery systems and its partnership with AM General strengthens its credentials as a major player in the global defence sector.

John Chadbourne, Executive Vice President of AM General, reportedly said, “This Letter of Intent represents an important step in expanding our strategic partnership. With KSSL’s proven artillery capabilities and our shared commitment to innovation, we see immense potential in bringing advanced artillery solutions to the US defence forces. We look forward to exploring this collaboration with the Kalyani Group to deliver advanced mobile artillery capabilities."

Why it matters

AM General expressing interest in buying made-in-India artillery cannons is a big boost for India’s defence exports.

The Indian government has set a goal of achieving defence exports of Rs 50,000 crore by 2029. The country’s defence shipments surpassed a record Rs 21,000 crore in the financial year 2023-24, a huge surge from Rs 2,000 crore a decade ago.

India supplies arms to over 85 countries, including Italy, the Maldives, Russia, Sri Lanka, the United Arab Emirates (UAE), the Philippines, Saudi Arabia, Poland, Egypt, Israel, Spain, Chile, and others. Despite the significant rise in defence exports, India remains the world’s top arms importer.

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A deal between KSSL and AM General would be another step to ramp up defence industrial cooperation between India and the US. It will also establish India as a trusted supplier of advanced weaponry in the global market.

As the US turns to India to procure artillery systems, it shows India’s defence manufacturing capabilities are getting international recognition.

With inputs from agencies

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