India Explosives and Propellants Market Size | 2019-2033

India Explosives and Propellants Market Growth and Performance

• Revenue in the India explosives and propellants market is estimated to reach US$ XX Million by 2032, with an expected Compound Annual Growth Rate (CAGR) of XX% from 2024 to 2032.
• In 2023, the market size of the explosives and propellants industry in India was US$ XX Million.

India Explosives and Propellants Market Outlook

India’s explosives and propellants market is undergoing a remarkable transformation, spurred by robust defence modernization programs, the ‘Atmanirbhar Bharat’ initiative, and escalating geopolitical tensions. The country is rapidly scaling its domestic production capacity of ammunition, propellants, and energetic materials to meet the strategic needs of its armed forces while reducing dependence on imports. With defence spending consistently rising and multiple public-private partnerships taking shape, India’s explosives and propellants sector is poised for sustained, long-term growth. Strategic contracts, infrastructure upgrades, and a new wave of indigenous technological advancements are setting the stage for India to become a global hub for defence manufacturing.

A major milestone in this expansion came with the Ministry of Defence awarding contracts worth ?10,147 crore to boost the Indian Army’s firepower. These deals include the procurement of Area Denial Munitions Type-2 from Economic Explosives Ltd, high-explosive pre-fragmented warheads for the PINAKA multiple-launch rocket system from Munitions India Ltd, and significant software upgrades for the SHAKTI fire control system through Bharat Electronics Ltd. This coordinated investment not only strengthens frontline capabilities but also emphasizes India's drive toward indigenous production of critical defence systems. The PINAKA system, for example, is a vital component of India’s artillery modernization plan, showcasing the strong linkage between explosives and propellant technology and artillery performance.

Further bolstering India defence sector leadership, Economic Explosives Ltd, a subsidiary of Solar Industries, signed a Memorandum of Understanding (MoU) valued at over ?12,700 crore during the World Economic Forum at Davos. This agreement underlines EEL’s focus on expanding into high-growth defence areas such as military transport aircraft systems, UAVs, advanced warhead explosives, and micro missile development. Such diversification into aerospace and future warfare technologies represents a critical evolution in India’s energetic materials segment, which traditionally concentrated on conventional munitions.

The trend of collaborative innovation continued with Premier Explosives Ltd forming a strategic joint venture with Global Munition Ltd, a subsidiary of NIBE Ordnance and Maritime Ltd. This venture aims to strengthen domestic production capacities in advanced defence and aerospace products, aligning closely with the government’s ‘Make in India’ and ‘Defence Production and Export Promotion Policy.’ Premier Explosives, already a key supplier of solid propellants for programs such as Akash and Astra missiles, is now positioned to leverage its technological edge alongside Global Munition’s operational expertise, thereby widening the scope of indigenous defence manufacturing.

Overall, India’s explosives and propellants market is accelerating toward self-reliance and global competitiveness. The emphasis is no longer just on meeting the country’s defence requirements but also on establishing India as a major exporter of defence technologies, including propellants, explosives, and advanced munitions systems. With increased R&D funding, enhanced manufacturing capabilities, and strategic policy support, India is setting new benchmarks in the global energetic materials industry.