India has historically been the largest importer of military equipment, but it is now actively working to bolster its domestic defense industry. In pursuing this goal, the country appears to disregard international regulations, sanctions, and even diplomatic ties. Notably, a state-run defense public sector unit continued to engage in arms sales with a controversial German firm that has faced a business ban.

Recent reports from Indian media indicate that concerns arose when Munitions India Limited (MIL), a government-owned entity, supplied approximately 500 tonnes of explosives to Rheinmetall, a German company that has been inactive since 2012 due to corruption allegations. The final shipment is believed to have been suspended after the issue was escalated to government authorities.

Over the past two years, MIL has experienced a surge in international orders, driven by increased global demand for explosives in the wake of the Russia-Ukraine conflict. The company has reached full production capacity, with numerous countries eager to place orders. Documentation reveals that the explosives were sold through an intermediary, with the initial shipment of 144 tonnes dispatched in October 2023 to a Spanish firm, Expal, which is now owned by Rheinmetall. Two additional shipments followed, with the last one occurring in March 2024.

Sources indicate that the initial delivery contract was established with Expel, which subsequently underwent a change in ownership to Rhine Metal. This transition was not communicated to the relevant higher authorities. Additionally, a comprehensive questionnaire submitted to the Ministry of Interior and the Ministry of Defense has not received a response.

Earlier it was revealed that artillery shells from Indian arms firms were being shipped to Ukraine by European customers and New Delhi had not intervened to stop the trade despite Moscow’s protests, Reuters news agency told Indian and European governments. A report was published in this regard after discussions with eleven sources and commercial analysis of the defense industry.