India, Germany Strike ‘Strategic Partnership’ on Ammo Production

India’s Reliance Defence and Germany’s Rheinmetall have signed a memorandum of understanding to collaborate on large-scale ammunition production.

A key feature of the partnership is Reliance’s establishment of a greenfield manufacturing facility based in the Watad industrial area in the southwest of India, as well as committing both companies to work together on marketing and expansion.

Reliance’s upcoming facility, expected to have a yearly production of up to 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants, will enable the Indian defense company to supply explosives and propellants for medium- and large-caliber ammo to Rheinmetall as part of the agreement.

This arrangement means enhancing Rheinmetall’s supply chain security and increasing access to crucial raw materials. It will also contribute to New Delhi’s “Make in India” initiative, achieving its defense export target of $5 billion, and supply the country’s armed forces.

“This Strategic Partnership of Rheinmetall with Reliance Defence led by Anil Ambani’s Reliance Group illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi,” said Rheinmetall CEO Armin Papperger.

Meanwhile, Reliance Group Founder Ambani described the event as “a transformational moment for the Indian Defence sector and for Reliance Infrastructure’s subsidiary Reliance Defence.”

Germany-India Ties

Previously, defense partnerships between Germany and India were minimal as “there was very little commonality” between the two, the Indian Navy’s former Chief Arun Prakash informed DW.

However, Russia’s war in Ukraine in 2022, coupled with China’s growing assertiveness in the Indo-Pacific region, has driven Berlin and New Delhi closer together.

With NATO member Germany aiming to reduce Indian reliance on Russian arms and supporting its plans to diversify defense partnerships, it has engaged India in multiple defense activities, including inviting the South Asian giant as an observer into the Eurodrone program.