Wednesday, February 26, 2025

India’s Private Defence Industry Seeks To Modernise Military Capabilities With Small Arms Innovation & Foreign Collaborations

By Staff Correspondent

The Indian Armed Forces, Central Armed Police Forces (CAPF) and law enforcement agencies have traditionally relied on foreign Original Equipment Manufacturers (OEMs) for their weapons and ammunition. However, this is changing as the country opens up arms and ammunition manufacturing to private players. While Defence Public Sector Undertakings (DPSUs) have been responsible for arms and ammunition, other domestic entities are now setting up plants or collaborating with foreign OEMs.

The Kalyani Group, for instance, has partnered with French firm Thales, while the Adani Group has collaborated with Israel Weapon Systems (IWI). The Jindal Group has also tied up with Brazilian firm Taurus Armas S.A. and Neco Desert Tech, a joint venture between Indian and American firms.

In 2001-02, the Department of Industrial Policy and Promotion (DIPP) secured a decision from the Cabinet to manufacture small arms and ammunition for the private sector. Since then, the Government of India (GoI) has opened up Foreign Direct Investment (FDI) by up to 76%. Additionally, the Indian Army is undergoing a massive modernisation drive to re-equip over a million troops with advanced personal arms. In parallel, the country’s CAPFs and paramilitary forces need a replacement for the redundant INSAS.

Modernisation requires upgrading pistols, carbines, close-quarter battle (CQB) weapons, assault rifles, sniper rifles, and light, medium, and heavy machine guns with matching ammunition. The Army Design Bureau (ADB) focuses on indigenous technologies and solutions for small arms and ammunition. However, domestic OEMs need help navigating the regulatory process.

To address these challenges, the Indian industry must create a complete ecosystem for the modern-day combat soldier. The heavy investment cycle in defence manufacturing pushes the industry to the edge, and early orders from the armed forces are crucial for domestic players to sustain and spend on research and development. The head of an Indian defence entity warns that it would be unfair to firms that have already invested their money and time to set up a manufacturing facility and have been waiting for orders.

As India modernises its military, the domestic arms industry has an opportunity to grow and thrive. By investing in research and development and navigating the regulatory process, domestic players can successfully compete with foreign OEMs and help build India’s defence capabilities.

Despite setbacks, the Indian private defence industry has made significant strides in small arms innovation. Kalyani Strategic Systems (KSSL) has launched the Assault Rifle 7.62 x 39 mm, which boasts self-illuminated target tritium sights for faster target acquisition at low-light conditions and the provision for attaching under-barrel grenade launchers. KSSL has also introduced the 7.62mm MG-M2 light machine gun (LMG), equipped with cold-forged barrel integration, a rail for optical sights or night vision, and interchangeable spare barrels.

Meanwhile, the Adani Group’s joint venture with Israel Weapon Systems (IWI) has led to the development of the Masada 9mm pistols for the Indian Navy’s Marine Commandos (MARCOS) and other IWI weapons. The JV has delivered over 500 pistols to the Indian Navy under a fast-track procurement scheme.

Another domestic player, SSS Defence, has developed high-tech small arms, ammunition, and military optics with impeccable performance, including the Saber, a .338 Lapua Magnum long-range sniper weapon, the Viper, a 7.62X51 mm tactical sniper weapon, and the P-72 family of rifles.

India’s only private sector military-grade ammunition manufacturer and exporter, Hughes Precision manufacturing, is a prominent company specialising exclusively in indigenously manufacturing and proof testing various types of ammo. The company has carved a niche for Small Caliber Ammunition (SCA) and Military Calibre Ammunition (MCA).

Maximising India’s core competencies are crucial to the success of the nation’s private defence industry in its pursuit of innovative small arms. Cutting-edge metallurgical techniques play a fundamental role in achieving military-grade standards, allowing for the production of lightweight alloys at scale while reducing manufacturing costs. The Chairman and Managing Director of Bharat Forge, Baba Kalyani, highlights the industry’s expertise in designing a gun weighing 3 tons globally and scaling it down to 900 kilograms, which can be easily applied to tank design, reducing their weight from 50 to 25 tons.

Despite the industry’s significant progress in small-arms innovation, the regulatory process remains challenging for domestic players. Nevertheless, the Indian private defence industry’s dedication to exploring new possibilities for modernising the nation’s military capabilities is remarkable.






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