India Becomes Second-Largest Supplier to European Ammunition Market

India Emerges as Second-Largest Ammunition Supplier to Europe

The conflict between Russia and Ukraine, which began in February 2022, has sent shockwaves through the global defense market, leading to an unprecedented surge in demand for arms and ammunition in European countries. In this evolving landscape, India has emerged as a key supplier, delivering approximately $872 million (around ₹8,271 crore) worth of ammunition and related defense materials to European nations over the past four years. This figure represents a staggering increase of over 1600% compared to the four years preceding the conflict.

With this surge, India has established itself as the second-largest supplier to the ammunition market in Central and Eastern Europe, ranking behind South Korea, a significant leap from its previous 28th position before the war. Analysis of international trade data clearly indicates that between February 2018 and February 2022, India's ammunition exports to European countries amounted to only $49.2 million. However, following the outbreak of the Ukraine war, demand for these products skyrocketed, pushing the export figures past $872 million in the last four years.

The primary reasons behind the growing share of Indian ammunition in the European market are attributed to European nations bolstering their military reserves and their large-scale procurement of these products for ongoing military aid to Ukraine.

Boom in Defense Exports Reflects Shifting Global Dynamics

The most significant impact of this rapid growth in defense exports has been observed in trade with Central and Eastern European countries. Approximately 75% of India's total European ammunition exports have been directed to nations in this region. Key countries include Poland, Romania, Bulgaria, the Czech Republic, Slovakia, Slovenia, Croatia, and nations in the Baltic region.

These countries are not only providing military assistance to Ukraine but also increasing their own ammunition stockpiles for their armed forces. The protracted conflict has placed immense pressure on the existing military reserves of European nations, thereby enhancing the importance of external suppliers like India. Limited production capacity within the European defense industry and the sudden increase in military requirements have compelled many countries to seek new international suppliers.

Indian companies are supplying artillery shells, mortar shells, explosives, propellants, and other critical ammunition components tailored to the specific needs of the European defense industry. Given the crucial role of artillery in modern warfare, a continuous and large-scale supply of shells becomes essential, a challenge European nations have faced during the conflict. These circumstances have created opportunities for Indian companies to secure new export contracts.

Government and private sector entities such as Munitions India, Yantra India, and Bharat Forge have made significant contributions to ammunition manufacturing and the development of defense production capabilities. The potential for joint production and technical collaboration with European defense companies is also seeing an upward trend.

Question of Indian Ammunition Reaching Ukraine

With the increasing export of Indian ammunition to Europe, a pertinent question arises regarding whether some quantity is reaching the Ukrainian battlefield. In a September 2024 investigative report, the international news agency Reuters claimed that some artillery shells manufactured in India had been supplied to Ukraine through European buyers. The report also mentioned supply chains involving Italy and the Czech Republic.

However, it has not been definitively established how much of the Indian ammunition exported to Europe ultimately reached Ukraine. The Indian government has refuted such allegations, with the Ministry of External Affairs in September 2024 describing the relevant report as 'speculative and misleading.' The ministry also clarified that India adheres to its international obligations and established regulations in its defense exports.

India's official policy has been to seek a resolution to the Russia-Ukraine war through dialogue and diplomacy, rather than providing military support to either side. India has maintained its traditional relationship with Russia, while also continuing dialogue with Ukraine and Western countries.

Diplomatic Balancing Act and Economic Opportunities

Russia has long been a major defense partner for India, with a substantial number of Russian-made fighter jets, tanks, missile systems, and other military equipment in service with the Indian armed forces. Furthermore, significant trade relations exist between India and Russia in the energy sector. On the other hand, India is also continuously enhancing its defense cooperation and trade with the United States and European countries.

In this context, supplying ammunition to the European market presents a significant economic opportunity for India, while also becoming a sensitive diplomatic issue. India has always emphasized dialogue and diplomacy for resolving the Russia-Ukraine conflict. New Delhi has maintained its ties with Russia while continuing engagement with Ukraine and Western nations.

Experts in international affairs believe that India faces a major challenge in ensuring that the expansion of its defense exports remains consistent with its international obligations and its relationships with strategic partners like Russia. The growth in India's defense exports comes at a time when India's overall defense exports are also setting new records.

India's Defense Exports Reach New Milestones

According to data released by the Ministry of Defence in April 2026, India's total defense exports reached ₹38,424 crore in FY 2025-26, marking an increase of approximately 62.66% compared to ₹23,622 crore in the previous fiscal year. Both government defense undertakings and private sector companies have significantly contributed to this success.

The government has set an ambitious target of reaching ₹50,000 crore in defense exports by 2029. Efforts to enhance self-reliance in defense manufacturing, expand production capacity, and increase the acceptability of Indian defense products in the international market have fueled this export growth.

Long-Term Opportunities and Challenges Ahead

The increase in defense budgets in Europe is also opening up long-term opportunities for Indian companies. Beyond the immediate supply of ammunition, there is a strong possibility of growth in areas such as the expansion of production facilities, joint ventures, technical cooperation, and defense equipment maintenance in the future.

However, to leverage this growing demand sustainably, Indian companies must ensure their production capacity, adherence to international quality standards, timely delivery, and compliance with export regulations. Furthermore, European countries' plans to boost their domestic defense production could pose competition for Indian exporters in the future. Thus, the challenge for Indian companies is not just to secure new orders but also to establish a lasting presence in the international defense supply chain.

The Russia-Ukraine war has underscored the critical importance of the uninterrupted supply of ammunition, alongside the availability of weaponry, in any prolonged military conflict. This evolving scenario has created new opportunities and challenges for global defense industries. India's ascent from 28th to second place in the European ammunition market is a notable achievement, although it does not indicate India's second ranking in global arms exports. If India further strengthens its production capacity, technological development, and reliable supply systems in the future, its defense trade with European countries could become even more extensive.

For now, the escalating military demand in war-torn Europe has provided the Indian defense industry with a significant opportunity to expand its role on the international stage. This development is proving to be extremely important for India's economic prospects, its defense sector's self-reliance, and the shifting global strategic equations.