Private defence suppliers in India are pushing for a major policy review, urging the Ministry of Defence (MoD) to change present procurement rules that favour public sector manufacturers for ammunition supplies.
Currently, the Defence Procurement Manual (DPM) confines most ammunition procurement contracts to public sector enterprises (PSUs), preventing private sector firms from directly contributing to meeting the Indian Armed Forces’ munitions requirements.
Private manufacturers say that changing this limitation and allowing open Requests for Proposals (RFPs) to both public and private companies will not only reenergize the industry but would also further the goals of the Make in India drive. Many private enterprises have already made significant investments and established indigenous capabilities, putting them in a strong position to deliver world-class ammunition to the military.
During a recent encounter, representatives from the private sector, including top executives from well-known companies, made their case to the MoD.
The Ministry, along with the Department of Military Affairs, apparently acknowledged these concerns and told the business that the idea is being reviewed. This plan, if approved, may be a watershed moment in India’s defence industrial environment.
Adani Defence and Aerospace, a leading private manufacturer, has set up a substantial ammunition manufacturing facility in Kanpur as part of the Uttar Pradesh defence corridor. The facility produces 150 million rounds of small-calibre ammunition per year, including 5.56mm (mostly used in INSAS rifles), 7.62mm (for AK-47, AK-203, and NATO-standard rifles),.338mm for sniper rifles, and 9mm for pistols. According to Ashish Rajvanshi, CEO of Adani Defence & Aerospace, the company already has the ability to expand up to 300 million rounds each year.
He argues that this capacity is sufficient to meet all defense force requirements while maintaining the highest quality standards, including NATO certification, making them eligible for export to a number of nations approved by the External Affairs Ministry and the Ministry of defense. Adani Defence currently supplies ammunition to four nations and has recently participated in successful auctions to supply rounds to Uttar Pradesh Police through the Government e-Marketplace (GEM) site.
Adani’s objective includes localising the manufacture of propellants (explosive materials), which are now primarily imported from Europe and the United States. Adani intends to reduce India’s foreign dependence while also mitigating vulnerabilities to international supply chain disruptions. This desire for self-reliance is consistent with the government’s efforts to indigenize the defense sector.
Supporting this momentum, Defence Minister Rajnath Singh designated 2025 the ‘Year of Reforms’ for the armed services, promising significant upgrades to ensure technical advancement and battle readiness.
The Minister highlighted India’s significant development in defense exports, which increased from ₹686 crore in 2013-14 to ₹23,622 crore in 2024-25. These changes, together with increased participation of qualified private actors, have the potential to transform India into an internationally recognized, self-sufficient powerhouse in defense manufacture.
