A big moment for small arms

The Indian Small Arms System (Insas), which was developed in the 1980s, entered service in 1998, just in time for the Kargil War against Pakistan in 1999. The Insas was India’s first indigenous assault rifle to be used in combat and incorporated many 

design elements from the AK-47 (Avtomat Kalashnikova). 

The Insas suffered from multiple, well-documented failures. Its polymer magazines cracked in cold weather. The rifle jammed in dusty conditions and extreme cold. The fire selector would switch modes accidentally. 

An audit by the comptroller and auditor general later revealed that 13-17 per cent of Insas rifles had to be sent back for repairs of metallurgical defects. Soldiers in Kargil reported the weapon leaking oil and going into automatic mode when set for three-round bursts. In the freezing heights of Kargil, the rifle simply could not be trusted.

“We went to the Insas, and it was a problematic weapon right from the start. I recall, particularly in the insurgency areas, people used to complain that the terrorists have much better AKs,” Lieutenant General Deependra Singh Hooda (retired), former general officer and commander-in-chief of the Indian Army’s Northern Command, told Blueprint.

“A soldier must have confidence in his weapon. And with the Insas, unfortunately, that confidence was missing. If that doubt is there in the soldier’s mind, then it’s a problem; the criticality is for a weapon system which will not fail at a crucial time. The main thing that’s required is reliability,” Hooda added. 

The consequences were visible on the ground: “In fact, we used to issue captured AK weapons to troops in the field.”

The problem was not merely the weapon itself but also the larger ecosystem responsible for developing and procuring infantry weapons. “The problem was that the Indian defence public sector undertakings (DPSUs) and the Defence Research and Development Organisation (DRDO) were not able to produce a good weapon system. Secondly, the general staff’s qualitative requirements and the way the army formulated them were somewhat problematic,” Hooda recalled.

He noted how some requirements became unrealistic, as the army once wanted a weapon with two different calibres using interchangeable barrels. “We did those trials in 2014, 2015 and 2016. Nobody had a weapon like this where you could interchange barrels of two different calibres. Obviously, those trials did not succeed,” Hooda said.

“Therefore, I think we then went to AK production, which has now started getting introduced,” said Hooda. 

“For the carbines, we still haven’t found a solution.”

The army’s search for reliable weapons eventually led to imports. “Therefore, we imported the Schweizerische Industrie Gesellschaft (German for “Swiss Industrial Company”) SIG rifle, but that also was not in sufficient quantities that you could equip the whole army. We need better weapon systems, particularly in insurgency areas and on the Line of Control,” said Hooda. Even this Swiss rifle was procured without its thermal and night-vision devices, reducing troops’ ability to engage in night operations.

In 2024, the Indian Army placed a fresh order for 73,000 SIG 716 assault rifles chambered in 7.62×51 mm North Atlantic Treaty Organization (Nato) from United States manufacturer SIG Sauer, following an earlier procurement of 72,400 rifles in 2019. This decision was met with criticism from domestic manufacturers, but the army maintained that in 2018, no Indian company made such rifles, and imports were necessary for frontline troops.

This need is so acute that the army repeatedly had to turn to foreign companies like SIG for modern battle rifles. This is partly due to the Indian military’s need for modern, powerful 7.62mm calibre weapons, a technology domestic manufacturers have historically struggled to produce.

Yet imports alone do not solve the problem; domestic manufacturers need to step in and develop solutions, particularly in terms of carbines and sniper rifles. That debate between imports, licensed production and indigenous development continues.    

The new guard

The Ordnance Factory Board (OFB), an administrative giant that used to manufacture small arms for decades without any competition, has now been abolished and replaced by seven DPSUs. 

As part of its Make in India mission, the government has worked to dismantle the old regime. The biggest step in the field of defence was the 2021 corporatisation of OFB, an integrated conglomerate of 41 factories, into seven public sector companies. 

Among those seven, Munitions India Limited is responsible for manufacturing a wide range of small-arms ammunition, including 5.56×45 mm Insas rounds; 7.62×39 mm ammunition for AK-series rifles, 7.62×51 mm Nato ammunition for SIG 716 and other rifles; 9×19 mm pistol and sub-machine gun ammunition; 12.7 mm heavy machine gun rounds and sniper ammunition such as .338 Lapua Magnum, along with various other military-grade cartridges.

This was coupled with the creation of positive indigenisation lists  — a list that identifies defence equipment that can no longer be imported after specified deadlines and must be procured from Indian manufacturers — and the establishment of defence industrial corridors in Uttar Pradesh (UP) and Tamil Nadu. Together, these measures have created stronger incentives for both domestic and foreign companies to partner with the Indian industry and expand indigenous defence production. 

Private companies like SSS Defence, Kalyani Strategic Systems Limited, and Adani Defence have entered the fray, designing and manufacturing export-grade small arms entirely in India. Indian-made sniper rifles are now being exported to friendly nations and are meeting export standards.

Sixty kilometres from Bengaluru International Airport and into the industrial belt surrounding the electronic city sits a manufacturing complex operated by SSS Defence. Blueprint visited the facility to get a glimpse into how modern small arms 

are made. 

The factory floor is filled with rows of machines, working continuously on different rifle components throughout the day, 24x7, in three different shifts. These parts are made and tested at different stages of manufacturing and are aligned at workstations across the factory floor.

There are many multi-axis machining centres, barrel-making machines, assembly stations and quality control laboratories occupying different sections. Beneath the surface lies an underground ballistic test range where newly manufactured assault rifles, snipers and pistols undergo live-fire testing for accuracy and system trials before being cleared. 

Together, the design, manufacturing and testing infrastructure reflects the ambitions to move India beyond licensed production and towards indigenous weapon design.

Vivek Krishnan, chief executive officer of SSS Defence, said the company’s journey began in 2017 with a conscious decision to avoid becoming a mere assembler of imported kits. "On weapons, we decided to do it on our own, which was a very risky play then.”

Krishnan explained that the company believed genuine capability would come only through original design and experimentation, making it one of the very few original equipment manufacturers, or OEMs, in the sector. He said India’s challenge stems from confusing technology transfer with technological mastery.

“Foreign companies don’t give you a transfer of technology. They give you a blueprint,” said Krishnan. “The secret sauce is never in the blueprint. It’s the difference between know-how and know-why.”

Weapon development is ultimately a process of accumulating knowledge through trial and error rather than assembling imported kits. “We decided not to do screwdriver work,” he said, referring to licensed assembly models. Krishnan argued that companies relying solely on such arrangements face long-term limitations. 

“Anybody who does screwdriver (work), soon, is going to be left with nothing much to offer,” he added

“Technology, even in the small arms world, is evolving so fast that if you are a person who has got one simple product or who is basically doing licence production without really being able to evolve and transition to the next generation of systems, then you are going to be looking at the rest of the world go by fast and only watch from the sidelines,” Krishnan said. Apart from technology, reliability testing and upgrades are needed as a continuous exercise in the weapons industry.

Manufacturers attempt to achieve that reliability through incremental improvements. Engineers constantly work on corrosion resistance, accuracy and performance across extreme climates.

The requirements also vary according to operational environments. Infantry weapons for counter-insurgency operations differ from those intended for conventional engagements. “When you are fighting an insurgency, you really are not looking at the range. These are engagements which are carried out from very close ranges,” said Hooda. 

By contrast, Line of Control engagements often occur at a distance. “Generally, the rifles that you’re looking at range between three hundred and four hundred metres,” Hooda noted.

“For close-in engagements, you’re looking at ranges below 150 metres,” Hooda explained. That operational reality creates demand for multiple weapon categories. “You need a good rifle, and you need a good close-in weapon system like a carbine. Both are needed.” 

The Ministry of Defence’s (MoD) Technology Perspective and Capability Roadmap (TPCR), released in September last year, reflects this requirement. The document outlines long-term military needs over the next 15 years, including demand for more than 250,000 assault rifles chambered in 7.62x51 mm, over 230,000 carbines chambered in 5.56x30 mm rounds, and approximately 23,000-25,000 9x19 mm Nato standard machine pistols. The overall requirement exceeds 500,000 weapons, highlighting the scale of India’s future infantry modernisation effort.

The effort isn’t limited to weapons. Training systems, such as providing arms simulators, are also part of this transformation, as they save on cost and time. A 2026 study by The Energy and Resources Institute (TERI) found that scaling up simulator-based training across the armed forces could save over ₹1,000 crore annually by reducing ammunition usage and equipment wear.

The army is now investing heavily in simulation-based training as part of its broader modernisation push. In September 2021, the MoD released its Simulation Framework, prioritising simulation for force modernisation and cost optimisation. 

This has resulted in concrete projects for Hyderabad-based Zen Technologies, which has been awarded a ₹120 crore contract to establish India’s first Combat Training Node at the Infantry School in Mhow in Madhya Pradesh.

“Live and constructive training integrated into a single facility allows troops to train for scenarios that would be impossible to replicate on a live range. while saving the army significant ammunition and fuel costs,” Khaja Sirajuddin, subject matter expert at Zen Technologies, said. 

The company has shipped over 1,000 training systems to more than 30 countries, and exports account for approximately 38 per cent of its revenue.

“India’s simulator industry has reached a point where our systems are globally competitive," added Sirajuddin. 

“What the combat training node contract demonstrated is that Indian-designed and built training systems can meet international standards. We see genuine interest from several countries across Asia, Africa and the Middle East,” he said.

Yet even as procurement continues, experts believe modern infantry combat is evolving beyond the rifle alone. Hooda stressed the growing importance of optics and night-fighting equipment. “Our ability to engage targets by day and by night must be built into the systems that we buy,” he explained.

Krishnan voiced similar concerns: “I don’t think India has really understood many things about weapons and weapon accessorisation. We’ve had instances where the SIG 7.62x51 was bought without scopes.”

Hooda pointed to lessons emerging from Ukraine and the need for anti-drone weapon systems for troops.

Last month, SSS Defence secured multiple contracts for the first time from the Indian Army to supply its indigenous T-12 semi-automatic 12-gauge shotgun. The shotgun is used extensively in the Ukraine war as an effective weapon against low-flying drones, using pellet-based ammunition at close range.

Apart from the Indian Army, whose deliveries will begin next month, the company has also supplied weapon systems to paramilitary organisations and several state police forces, including specialised units engaged in counter-terrorism and other operations.

Krishnan said that the company has now supplied weapon systems to around 10 customers across police and paramilitary forces. “Our customers include UP Police, Punjab Police, West Bengal Police, Bihar Police, the National Security Guard (NSG), Telangana Police and Kerala Police,” said Krishnan. 

The Blueprint also visited the Hyderabad facility of Lokesh Machines Limited, another private company that has entered the small arms space. The company, founded in 1983 by former Hindustan Machine Tools employee M. Lokeswara Rao, was originally a manufacturer of special-purpose machines for the auto sector. When a recession hit the automotive 

industry, followed by the Covid-19 lockdown, the company realised it needed to de-risk its business.

“Automotive and machine tools are both highly cyclical industries. Every 4–5 years, you see downturns and upturns. Around 2019-20, we felt the need to diversify into another vertical,” explained M Srinivas, whole-time director of Lokesh Machines. “Since Hyderabad has a strong aerospace and defence ecosystem, we decided to explore that space. Naturally, we approached DRDO to understand where we could contribute.”

Starting by supplying critical components for light machine guns being developed by the DRDO, Lokesh made a full-blown foray into firearms manufacturing with the ASMI, a 9x19mm calibre submachine gun. The weapon, short for Asmita (Pride), was developed from a basic design provided by DRDO’s Armament Research & Development Establishment (ARDE), Pune, and the Indian Army. 

The gun features a semi-bullpup design that allows single-handed operation either as a pistol or a submachine gun, with an upper receiver machined from aerospace-grade aluminium and a carbon-fibre lower receiver. It was designed by Colonel Prasad Bansod of the Indian Army, in collaboration with DRDO, with Lokesh Machines as the production partner.

“We delivered components in a very short time, which impressed them. 

Then we began working on a no-cost, no-commitment basis, just to prove our capabilities,” Srinivas said. “During Covid, despite the shutdown, a small team of engineers came together and built the factory in about 3-4 months.”

Colonel Rajeev Sharma (retired), head of defence business at Lokesh Machines, explained the design philosophy behind the ASMI: “There was a gap in indigenous SMG (submachine gun) development. Earlier designs existed but had reliability issues. The new design focused on improving manufacturing processes and reliability. The goal was to create a weapon suited for Indian conditions while maintaining global standards.”

In November 2024, the Indian Army’s Northern Command inducted 550 units of the ASMI into its forces, making it the first indigenously designed, developed and manufactured weapon by the private sector to be inducted into the Indian Army.

“ASMI was pitted against global competition in terms of accuracy and reliability and outperformed them,” Srinivas said. “Our weapon is contemporary and comparable to global standards. It can fire both Nato and Indian ammunition. It is also more rugged and reliable in Indian conditions, which is a key advantage.”

The gun was put to rigorous testing by the Indian Army, including for drops, weather, saltwater, mud and a reliability test wherein it fired 2,400 rounds. The ASMI can fire 800 rounds a minute, is 10-15 per cent lighter than international rivals at less than 2.4 kg, and is almost 30 per cent cheaper than them at less than ₹1 lakh.

“If a weapon qualifies Indian Army testing standards, it can meet global benchmarks. In some cases, our weapons may even perform better,” Srinivas noted.

The Assam Rifles, a paramilitary force, has since placed an order for 1,013 ASMI carbines. Pilot lots have also been supplied to other forces such as the NSG, Indo-Tibetan Border Police, and Border Security Force.

Having tasted success with ASMI, Lokesh Machines is now beefing up its armoury. The company has indigenously designed, developed and manufactured a 7.62x51mm belt-fed medium machine gun (MMG) and a general-purpose machine gun of the same calibre that can be mounted on aircraft, tanks, jeeps, or ships. The gun is about 25 per cent lighter than existing MMGs in service.

The company received a ₹17.7 crore contract in August 2025 to supply components for in-service MMGs used by the army. “We are developing a full range, including light machine guns, general-purpose machine guns, and variations within the 9mm category,” Srinivas of Lokesh Machines said.

 

A new class of makers

Indian companies are also developing small arms with foreign companies to meet international standards. Adani Defence & Aerospace, through its joint venture Precise, Lethal and Reliable (PLR Systems) with Israel Weapon Industries (IWI), has emerged as another major player in India’s small arms manufacturing landscape. In March 2026, the company delivered the first batch of 2,000 Prahar 7.62x51 mm light machine guns (LMG) to the Indian Army from its Gwalior facility. 

The delivery, part of a larger contract for 41,000 LMGs signed in August 2024, was completed 11 months ahead of schedule. The model was realised in six months against a stipulated 18-month timeline, followed by bulk production clearance that enabled rapid transition to full-scale manufacturing.

The Prahar is an Indian version of IWI’s combat-proven NEGEV LMG, adapted to meet the Indian Army’s operational requirements. Approximately 50 per cent of the weapon currently comprises locally manufactured components, with PLR Systems aiming to achieve 100 per cent localisation over time. 

The 100-acre Gwalior facility integrates barrel manufacturing, bolt carrier and receiver fabrication, advanced machinery, robotics, surface treatment, precision metrology, and a 25-metre underground firing range. 

The plant has an annual capacity to manufacture 100,000 guns. PLR Systems has also secured a contract to supply 170,000 close-quarter battle (CQB) carbines to the army.  

Indigenisation is progressing in stages. The most ambitious example of this is the AK-203 project. Under a ₹5,200 crore contract signed in 2021, Indo-Russian Rifles Private Ltd (IRRPL) is manufacturing over 600,000 AK-203 assault rifles at the Korwa ordnance factory in Amethi, UP. 

India holds a 50.5 per cent stake in the joint venture, with Russia holding 49.5 per cent. Major General S K Sharma, CEO of IRRPL, called it the "younger brother of BrahMos”. Over 55,000 rifles have been delivered to the Indian Army so far. Another 100,000 are expected this year. The entire order of over 600,000 rifles is scheduled for delivery by December 2030, 22 months ahead of the original October 2032 deadline.

IRRPL is planning to sign its first export contract in 2026, with potential buyers in Africa, West Asia and other parts of Asia. Over 20 Indian state police forces have also shown interest. There are advanced talks to manufacture the AK-19 carbines and PPK-20 submachine guns in India, and the company is considering opening a second plant.

Despite the progress, significant bottlenecks remain. “Small arms development in India’s private sector is still very new. Earlier, big private players were mostly involved in joint ventures, not indigenous development,” Srinivas acknowledged. 

“Now, companies like ours are building modern manufacturing capabilities. But it’s a step-by-step process: collaborating with DRDO, accessing testing infrastructure, and gradually building capabilities. Testing itself is very expensive, especially for small arms. That’s where institutional collaboration helps,” he added.

Licensing also remains a major hurdle. “Developing the weapon (ASMI) was fast, but securing the licence took about three years. That’s where the delay really was,” Srinivas said.

Procurement cycles are another challenge. “They need to be more frequent and predictable. Companies like ours invest heavily in research and development and infrastructure. Without consistent procurement, returns become uncertain, which affects further innovation,” he said. “Unlike other countries, past performance doesn’t always translate into repeat orders; you often have to go through the entire procurement process again.”

“Exports are essential to achieve scale. Indian procurement alone is not enough. We are in discussions with several countries, particularly in Africa and Southeast Asia. There has been interest from foreign delegations during defence exhibitions,” Srinivas said.

The broader industrial picture suggests India may be moving towards a larger role in global small-arms markets. 

According to the Ministry of Commerce data, under HS Code 93, which covers arms, ammunition and related parts and accessories, exports surged from ~778.72 crore in FY2018-19 to ~7,215.74 crore in FY2025-26, marking an almost ninefold increase.

Countries in Europe, like Romania, Armenia and Slovenia, have emerged among the largest destinations for Indian exports. While Israel, for years, has continued to be one of the biggest suppliers of ammunition, rifles and components to India.

Krishnan of SSS Defence argued that exports ultimately depend on ownership of intellectual property and design authority: “If you are not an original designer or manufacturer of the weapons, no country will buy from you.” 

“One of our very first customers was the Armenian Ministry of Defence. That became the very first sniper rifle in India’s history to have been exported,” said Krishnan, while also supplying ammunition to Nepal from 2021 and Armenia from 2022.

The company has since expanded its outreach to overseas markets for sniper rifles and other weapon systems, even as its sniper rifle continues to undergo trials with the Indian armed forces. This process has stretched for nearly five years. 

It raises a broader question within the industry: If an Indian-designed sniper rifle has already found acceptance among foreign customers, what factors continue to delay a final procurement decision at home?

“We are right now in discussions with about eight countries,” Krishnan noted, adding that these countries span Asia, Africa and Latin America. He said the company has also supplied weapon suppressors (silencers) to France and components, which include key precision barrels and pressure parts, to European companies.

SSS Defence is looking beyond the Indian market, positioning itself as a global OEM rather than a company dependent solely on domestic tenders. “Now the time is to see ourselves as global. If we are a global company tomorrow, then we have to start thinking about global customers,” said Krishnan. Export is becoming a major contributor to the company’s finances. “In this financial year, almost 50 per cent of revenue will be exports,” said Krishnan. 

He said the company expects its revenues to move beyond “tens of crores” into “hundreds of crores” while forecasting strong overseas demand over the coming decade.

“The company expects to sell around 40,000 weapons this year and targets nearly 100,000 next year. We have an order book which is already 40,000, going up to possibly about 60,000 by the end of this financial year,” he added.

However, experts caution that self-reliance in defence manufacturing remains a long-term objective rather than an accomplished reality. “The Indian defence industry is not today mature enough to be able to produce everything that the Indian military needs. And therefore, you will need a transfer of technology,” Hooda said. 

He argued that India would continue to require technology transfers and foreign partnerships in the near term but that the country must simultaneously build domestic capabilities.

India's future small-arms capability will depend heavily on private-sector participation. “We need to encourage the private industry much more,” said Hooda  adding that private firms are often quicker to absorb emerging technologies than traditional state-owned organisations.

The question that looms over these companies is whether small arms will remain relevant as warfare becomes increasingly contactless. Market forecasts suggest they will.

According to a 2025 report by OG Analysis, the global small arms and light weapons market was valued at $13 billion in 2025 and is expected to grow at a CAGR of 6 per cent to reach $22.1 billion by 2034. 

Despite its growth, India still exports the majority of its small arms. 

A significant objective of recent contracts, like the one for the UGRAM assault rifle developed by DRDO, is to reduce reliance on overseas suppliers. Defence production has reached record highs, but this transformation is ongoing and has not yet reversed the overall import dependence.  

“Sniper rifles are being completely imported,” Hooda said. 

“Do we think today anybody (in India) can produce some great, advanced military system that we need? The answer is, sorry, the majority is not there in the Indian defence industry. Maybe it will come in after 10 years.” 

Ironically, this wasn’t always the case.

India possessed a rich, centuries-old tradition of arms manufacturing, producing weapons renowned for their craftsmanship. However, after the Revolt of 1857, the colonial state systematically dismantled this indigenous industry, according to the writer Priya Satia in her book Empire of Guns: The Violent Making of the Industrial Revolution.

The British, fearing the spread of technical knowledge among the local population, closed down armouries and foundries to prevent Indians from learning the “theory and practice of artillery”.

This deliberate act of deindustrialisation crippled local production. In its place, the British established a new, state-controlled ordnance system, laying the foundation for factories like the one at Dum Dum in Bengal, which would supply the colonial army’s needs while leaving India’s own craftsmen and traditional gun-making expertise in ruins. 

More than 75 years after independence, India has finally regained some of its footing.  As evidenced by a ~2,770-crore contract being awarded in December last year to Bharat Forge and PLR Systems, which will equip the army and navy with over 4,25,000 CQB carbines and associated accessories.

But the road ahead remains long. Procurement cycles remain unpredictable, and DPSUs still dominate 75 per cent of production, with the private sector accounting for only a quarter. 

Whether India finally breaks the cycle will depend on sustained reforms and private-sector empowerment. For the first time in decades, however, there is reason for cautious optimism.