India is positioning itself as a low-cost supplier of critical defense equipment, including artillery ammunition, as global demand surges and Western production remains constrained.
According to a Reuters report citing Indian government sources, New Delhi is capable of producing 155mm artillery shells for just $300 to $400 apiece—less than one-tenth the price of comparable Western-made munitions.
The push comes as Prime Minister Narendra Modi’s government sets its sights on doubling arms exports to $6 billion by 2029.
While India missed its $3.5 billion export target for the last fiscal year by roughly 30%, it still recorded a sharp rise from a decade ago, when weapons and defense component exports stood at just $230 million.
“With this changing scenario, definitely we see a huge, massive demand for artillery ammunition,” said Ashish Kansal, CEO of SMPP, a private Indian firm setting up a production line for 155mm rounds. SMPP is one of several Indian companies, including state-run Munitions India and Adani Defence and Aerospace, aiming to meet rising global needs.
Reuters reported that some Indian firms have already received international orders for the shells. Indian-manufactured howitzers are reportedly being offered at $3 million per unit—about half the price of European equivalents.
The dramatic cost difference underscores India’s bid to fill gaps left by decades of post-Cold War Western defense downsizing. Many European countries are now scrambling to restart production lines for artillery shells amid the war in Ukraine, but India’s state-owned factories never ceased manufacturing high-caliber ammunition.
“There were no cuts on our production capacity,” said retired naval commander Gautam Nanda, now a defense consultant with KPMG India. He pointed to the country’s enduring strategic tensions with China and Pakistan as a reason for maintaining domestic readiness.
Delhi’s defense industry is now seeking to move beyond small arms and components, positioning India as a competitive player in the heavy munitions and platforms sector.
The aggressive export strategy aligns with broader geopolitical goals, as India seeks to increase its defense footprint in the Indo-Pacific and among nonaligned states looking for affordable alternatives to NATO-standard equipment.