India’s infrastructure, mining and defence ambitions are accelerating at an extraordinary pace, catalysed by sustained public capital expenditure and a strong push for domestic manufacturing. Yet, one critical enabler of this growth remains largely invisible until it is disrupted: industrial explosives.
Industrial Explosives Market Size is forecast to reach $15,110 Mn by 2030, at a CAGR of 6.74 per cent during forecast period 2024-2030. Asia-Pacific dominates the Industrial Explosives Market, owing to the increasing Mining industry growth and huge construction activities in the region. Increased domestic demand for metals and coal, for the rapid construction activities in Asian countries such as China, India aiding to the demand of Industrial explosives.
Industrial explosives as an enabler of core sectors
Whether it is coal mining, limestone extraction, tunnelling for highways and metros, or hydropower projects in difficult terrain, industrial explosives quietly determine speed, safety and efficiency. According to industry estimates, nearly 70–80 per cent of large-scale mining and infrastructure projects depend directly on consistent explosives supply. In defence manufacturing too, energetic materials such as TNT, RDX and HMX are not optional inputs. They are mission critical. When supply chains are smooth, the sector works seamlessly. When they are disrupted, projects slow down very quickly.
Current state of domestic manufacturing
India has made visible progress in domestic explosives manufacturing over the last decade. Private sector participation has increased, technology has improved, and safety standards have become far more rigorous. However, it would be unrealistic to say the journey is complete. Certain critical materials still rely on imports, and raw material volatility continues to affect costs and planning. Global disruptions over the past few years have highlighted the risks of relying on international supply chains for sensitive inputs. In today’s global environment, these vulnerabilities carry real risk.
Why the union budget matters
That is why the Union Budget matters so much for this sector. Not because of one specific announcement, but because of the direction it sets. Explosives manufacturing is not a short-cycle business. Plants are built with long operating lives in mind. Safety systems, automation and compliance infrastructure require significant upfront investment. What manufacturers look for is consistency-steady demand, predictable policy and confidence that long-term investments will be supported.
Government spending on infrastructure, mining and defence has already created momentum. India’s capital expenditure has more than doubled over the last five years, providing long-term demand visibility for explosives manufacturers. Continued emphasis on capital investment in these areas sends a strong signal. It allows manufacturers to plan capacity expansion responsibly rather than reactively. This predictability is often more valuable than any one-time incentive.
Managing cost pressures and inputs
Cost pressure, however, remains a persistent concern. Raw materials, particularly ammonium nitrate and other critical inputs, are subject to global price fluctuations. Over the past few years, this volatility has made cost management increasingly difficult. Rationalising duties on key inputs would help stabilise pricing and improve competitiveness across the value chain.
Advanced energetic materials and defence needs
This is not about lowering standards or cutting corners. It is about enabling efficient domestic production.
Another area where support is needed is the manufacturing of advanced energetic materials such as TNT, RDX and HMX. With defence indigenisation targets steadily rising, demand for these materials is expected to grow in the coming years. These products require specialised facilities, highly trained manpower and uncompromising safety systems. Scaling up domestic capacity in this space involves long gestation periods and significant capital. Budget measures that encourage private investment — whether through tax incentives, faster approvals or R&D support — can make a tangible difference.
Innovation, safety and sustainability
Innovation also deserves attention. The industry is steadily moving towards safer and more environmentally responsible explosives technologies. This transition requires sustained research and testing. Encouraging R&D through targeted incentives would not only improve safety outcomes but also align the sector with India’s broader sustainability goals.
Regulatory efficiency
Regulation is another reality manufacturers work with every day. Safety and compliance are essential and non-negotiable. At the same time, procedural complexity can slow down expansion plans and delay investments. Streamlining approvals through digital licensing and single-window mechanisms can significantly reduce delays while maintaining strict oversight. Streamlined processes, digital licensing and single-window approvals can significantly improve efficiency while maintaining strict safety oversight. Faster decisions help manufacturers deploy capital more effectively and respond to project timelines.
Strategic alignment and export potential
Domestic explosives manufacturing fits naturally into the vision of Atmanirbhar Bharat. Reducing import dependence for critical energetic materials strengthens national resilience. It supports defence indigenisation efforts and ensures supply security in times of global uncertainty. It also creates a wider ecosystem of skilled employment, MSME participation and technical capability within the country.
There is also an opportunity beyond domestic demand. Indian manufacturers today operate at quality and safety levels that meet global standards. With the right export facilitation and certification support, India can expand its presence in international markets. A stronger export footprint improves scale, competitiveness and technological maturity.
Ultimately, strengthening domestic explosives manufacturing is not about headline announcements. It is about steady, practical policy support that recognises how this industry actually functions. The Union Budget has the opportunity to reinforce that understanding — by supporting capacity creation, easing cost pressures, encouraging innovation and simplifying processes.
If that happens, this sector will continue doing what it has always done best: enabling India’s growth quietly, safely and reliably. |
