Rolls-Royce plans major investment in India for jet engine production
28 Dec 2025

British aerospace manufacturer Rolls-Royce has announced its intention to make India its third "home market" outside the UK.

The move is part of a broader strategy to tap into opportunities across various sectors, including jet engines and naval propulsion.

Sashi Mukundan, EVP of Rolls-Royce India, said the company is planning a "big investment" in India with developing next-generation aero engines as a priority.

Rolls-Royce's contribution to India's defense capabilities
Strategic partnership

Mukundan emphasized Rolls-Royce's potential to meet India's need for electric propulsion systems, enhancing the Indian Navy's combat capabilities.

He also noted that developing the AMCA jet engine could enable India to produce engines for naval propulsion, given Rolls-Royce's unique global expertise in "marinizing" aero engines.

The company plans to sign two MoUs with Indian defense PSUs, one for Arjun tank engines and another for future-ready combat vehicles.

Rolls-Royce's commitment to industrial ecosystem
Investment impact

Mukundan said the investment would be "big enough that people will notice it," but he refrained from giving a specific figure.

He stressed on the importance of this investment in developing an entire value chain and ecosystem in India across sectors where Rolls-Royce operates.

The company's CEO, Tufan Erginbilgic had earlier told Prime Minister Narendra Modi that India is going to be critical for Rolls-Royce's future growth.

Role in India's AMCA program
Engine development

On the AMCA engines, Mukundan said extensive discussions and groundwork are underway.

He stressed that all engine design work can be done in India with relevant technology transfer and joint ownership of new intellectual property rights.

This would give strategic control over design IP, making manufacturing the next stage, a more complex one.

Expertise in global jet engine manufacturing
Global presence

Mukundan highlighted Rolls-Royce's dominance in the global jet engine market.

He said the firm has been building and certifying engines every 18 months, including combat and commercial ones.

For combat, he cited the Eurofighter Typhoon powered by their EJ200 engine with a thrust capacity of 90 kilonewtons.

He also mentioned Rolls-Royce's role in developing an engine for F-35 aircraft with GE Aviation as part of a joint program.