Representative Image | Photo Credit: MURALI KUMAR K

As the Ministry of Defence (MoD) pushes for complete indigenisation of ammunition to ensure self-sufficiency for long-drawn wars, explosive manufacturing licenses are being issued to companies, including startups. These firms will produce ordnance and integrated munitions for autonomous and unmanned systems to enhance precision strike capabilities.

As of December, last year, the Indian Army had indigenised 159 out of 175 ammunition variants, clocking a self-sufficiency level of 91 per cent to reduce import dependence. The Ministry intends to cut down the gap between the availability of unmanned systems and accompanying integrated ammunition, said sources.

One of the startups that has got industrial explosive license under the Industries (Development and Regulation) Act, 1951, is Sagar Defence Engineering which is looking to diversify into munitions manufacturing probably to arm its inhouse advanced unmanned and autonomous solutions. Besides that, they plan to offer their explosive products in the country’s ammunition market projected to grow from $2.66 billion in 2026 to $4.44 billion by 2031.

Recent shift

“The recent shift towards hybrid warfare, which is the growing use of unmanned systems, highlights the need for developing explosives that are integration-driven, where payloads can work seamlessly with intelligent platforms,” Captain Nikunj Parashar, Founder and CEO of Sagar Defence Engineering, told businessline about the government’s initiative.

The plan is strongly aligned with the upcoming government initiatives that are supporting startups like ours to develop such systems for national security, keeping in mind the evolving nature of warfare, Parashar said as his company is set to expand into manufacturing or arms and explosives over the next two years.

The company stated that the initial focus will be on defence ordnance that will integrate autonomous and unmanned systems, and not just traditional forms of arms and explosives, along with specific solutions in the maritime surface and sub-surface domains.

Sagar will set up two facilities at the current defence manufacturing unit in Maharashtra and another at the upcoming Autonomous Maritime Shipyard and Systems Development Centre in Andhra Pradesh.

Currently, the focus is also towards specialised ammunition categories where technology integration, reliability and mission adaptability are more critical. 

“The maritime surface and sub-surface domain is significantly important, being a maritime nation. The development and integration of advanced technology is essential, and we aim to contribute to this gap by building indigenised, application-specific solutions designed for integration with autonomous maritime systems, as well as emerging maritime ordnance segments and existing platforms,” he said.

businessline had reported in December that of the remaining 16 ammunition variants, the MoD has initiated in-house production of four to seven types of bullets, rockets and missiles to further enhance the Army’s warfighting capability through smart munitions.

These include the Russian-origin Armour-Piercing Fin-Stabilised Discarding Sabot (APFSDS) anti-tank ammunition and Swedish-designed 84 mm ammunition. The projects are expected to be completed shortly, sources had told the newspaper earlier.

Published on April 9, 2026