Artillery Shell Boom For India Amid Ukraine-Russia War; Indian Firms To Set Up Manufacturing Lines In Estonia

During the Ukraine-Russia war, howitzers have proved their mettle. The conflict in the Middle East has further exacerbated the requirement for 155 mm artillery shells.

Europe has been looking at alternate options to procure artillery shells for its forces and to help Kyiv. This has forced the European countries to explore India as an alternative source of artillery rounds.

After Poland and Slovenia, now another Russian neighbor, Estonia, is exploring if Indian companies can set up manufacturing lines in the country. Estonia’s Defence minister Hanno Pevkur has said Indian companies are keen to invest in his country to produce ammunition. India has been positioning itself as a manufacturer of defense equipment.

The Indian companies that manufacture 155 mm ammunition are interested in investing in Estonia’s defense industry park. Estonia is one of the few countries in NATO that has consistently met the 2 percent defense spending requirement.

Along with the artillery shells, the possibility of setting up an artillery manufacturing line is also considered.

In an interview with WION, Minister Pevkur said, “It’s not only ammunition. It’s also the production of Armed Vehicles and Howitzers. So, the cooperation is very intense. So, I do hope that I can find the time also to come to India.”

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The importance of artillery can hardly be overstated. While modern technologies like drones are playing a crucial role in the war, the outcome of the Ukraine war will likely depend on which side can sustain its use of artillery fire for a longer period. Artillery has some distinct advantages. It can fire day and night and in any weather condition and is immune to modern electronic warfare systems.

For years, Europe neglected artillery ammunition production in favor of air power and precision-guided weapons. Now, the EU is ramping up its production capability. An effort to increase the 155mm production in Europe is finally showing results. According to NATO estimates, Europe can produce nearly two million shells yearly.

EU states also need to stockpile ammunition for themselves. They need to replenish their stocks after supplying Ukraine, and they aim to meet the NATO requirement of having enough shells in their warehouses for 30 days of high-intensity warfare.

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Ukraine’s Insatiable Hunger For Artillery Shells

As the war enters its third year, Ukraine is facing a critical ammunition shortage. Despite reducing Russia’s ammunition advantage from 8:1 to 3:1, the gap is big, considering Russia plans to bump its defense spending by 25 percent in 2025. Kyiv requires about 2.4 million artillery shells annually.

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In February 2024, European countries responded to Ukraine’s needs with a plan to acquire artillery shells from non-EU sources. The initiative aimed to procure 500,000 rounds of 155mm and 300,000 rounds of 122mm artillery, worth US$3.2 billion. These shells are vital as Russia currently produces around 250,000 artillery rounds per month, vastly outpacing the US goal of 100,000 rounds monthly by 2025.

On February 19, the European Union’s top diplomat, Josep Borrell, urged member states to opt for countries outside the Union if it was “better, cheaper, and quicker.” Apart from India, the EU was looking at Arab countries for alternate sources of supply for Ukraine.

During the Ukrainian conflict, the 155 mm howitzer was one of the most sought-after artillery rounds. Although the United States has already sent over 1.5 million rounds to Ukraine, Kyiv still needs more.

With conflict starting between Israel and Palestine, the US has been sending the munition to Israel as well. And the problem is that Russia alone can produce more ammunition than the whole Western block. Moscow is churning more than double the combined output of the EU and the US.

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However, European countries are now trying to catch up. Germany gave the nod to purchase 155 mm artillery ammunition worth more than US $ 400 million from Rheinmetall and an unnamed French company. The ammunition is intended to be sent to Ukraine.

According to a statement released by Rheinmetall on December 18, the German army ordered several tens of thousands of shells worth at least €100 million, or US$110 million, for the Ukrainian armed forces under an existing framework arrangement.

So far, 18 countries have pledged their support, including the Netherlands, Denmark, Belgium, Canada, Norway, and Germany as the top donors, which provided financing for the first batch of ammunition delivered to Ukraine in June. However, three countries have yet to provide funds.

In September, the Polish newspaper Gazeta Wyborcza revealed that Poland is one of those countries that has failed to deliver on what they promised.

M777 Howitzers
File Image: M777 Howitzer

However, after recurring delays, the European Union (EU) is finally close to fulfilling its commitment to supply Ukraine with one million artillery shells. EU diplomat Josep Borrell in November confirmed that the target of one million shells is nearing completion, with over 980,000 rounds already delivered.

Ukraine can now also produce 155mm artillery shells designed to meet NATO standards. These shells can be fired from Western-provided howitzers, including the American M109, Polish AHS Krab, and British AS90.

European Demand Fuelling India’s Artillery Boom

India has been reluctant to supply ammunition to Ukraine or any Western countries to maintain neutrality in the war. However, the war’s increasing demand for ammunition among the European countries has fuelled the artillery manufacturing boom in India.

India aims to become the prime manufacturing hub for advanced 155mm artillery ammunition for all types of artillery guns operated by over 75 armies worldwide.

The Indian Ministry of Defence (MoD) selected five domestic ammunition manufacturers in 2024 to supply around 2,000 155mm terminally guided munitions (TGMs) for the Indian Army’s in-service 155mm guns of 39/45/52 caliber artillery guns.

The 155mm TGM is the most advanced artillery ammunition, and its technology was not available in India in the past. The Indian-made artillery ammunition is cheaper than other global options.

Each indigenously made-in-India 155mm TGM projectile costs around Rs. 80 Lakhs ($100,000), one of the cheapest globally. Typically, a Western and Russian TGM projectile costs more than double, while US-made artillery ammunition costs three times more.

The Indian defense ministry has opened ammunition manufacturing to private companies. The private sector is now invited to fill critical ammunition shortages in some areas, and companies will be given long-term demand contracts to supply a variety of ammunition.

Five domestic companies – state-run Munitions India Ltd and private sector companies Adani Defence Systems and Technologies Ltd (ADSTL), Bharat Forge Ltd, Economic Explosive Ltd, Premier Explosives, and SMPP Ltd have been issued Project Sanction Orders (PSOs) by Army under the industry funder Make-II procurement scheme to develop 25 rounds of 155 mm TGMs along with four fire control systems in one year and participate in the trials on a no-cost-no-commitment basis. The prototypes must have 50 percent indigenous technology.

Several overseas original equipment manufacturers (OEMs) have shown interest in partnering with Indian companies to bulk-produce 155mm TGM projectiles.

Amongst the OEMs that have shown interest are Nexter of France, Rosoboronexport of Russia, Nammo AS of Norway, Saab Bofors Dynamics of Sweden, Elbit Systems of Israel, Diehl Defence of Germany, Denel of South Africa, Yugoimport SDPR of Serbia, Arsenal of Bulgaria, and Raytheon/ BAE Systems Inc of the US.

  • Ritu Sharma has written on defense and foreign affairs for nearly 17 years. She holds a Master’s Degree in Conflict Studies and Management of Peace from the University of Erfurt, Germany. Her areas of interest include Asia-Pacific, the South China Sea, and Aviation history.
  • She can be reached at ritu.sharma (at) mail.com