Rolls-Royce is making a significant strategic shift by positioning India as its third "home market," alongside the UK, the US and Germany, signaling a major investment in the country's aerospace and defense sectors. This move reflects growing confidence in India's economic growth, policy stability, expanding industrial ecosystem, and its increasing role in global supply chains.
The British engineering giant's plans involve substantial long-term investments to expand its manufacturing, engineering, and services footprint in India. These investments will span across several key sectors, including jet engines, naval propulsion, land systems, and advanced engineering. Rolls-Royce aims to support India's ambition of self-reliance in defense manufacturing and capitalize on the opportunities presented by the country's expanding aerospace and defense market.
A key priority for Rolls-Royce is the development of a next-generation aero engine in India, specifically for the Advanced Medium Combat Aircraft (AMCA) program. The company has expressed interest in collaborating on the indigenous development of aero-engines, a long-term strategic objective for India. This collaboration could accelerate advancements in high-performance propulsion technology and strengthen India's position in fighter aircraft manufacturing. Rolls-Royce is prepared to partner with India if the country is considering next-generation engines. The entire engine design work could be carried out in India, with technology transfer and joint ownership of new intellectual property, giving India long-term strategic control.
Rolls-Royce is also set to finalize two Memorandums of Understanding (MoUs) with Indian defense public sector undertakings. One agreement will focus on manufacturing engines for Arjun tanks, while the other will cover engines for future-ready combat vehicles. Furthermore, Rolls-Royce is exploring the development of MRO capabilities for the AE2100 engine in India.
Rolls-Royce sees India not only as a major customer market but also as a global hub for talent, sourcing, and innovation. The company employs thousands of engineers in India who work on advanced aerospace and power systems programs that serve global customers. The company is also evaluating India's role in next-generation technologies, including sustainable aviation fuels, hybrid-electric propulsion, and small modular reactors, as part of its long-term growth strategy.
Sashi Mukundan, Executive Vice President of Rolls-Royce India, has emphasized India's importance, citing the country's scale, policy clarity, and strong push for indigenous defense capabilities. He noted that India's expanding industrial ecosystem and its growing global role make it a natural long-term partner. Mukundan also highlighted the company's capability to adapt aero engine cores for naval use, including electric and hybrid propulsion for the Indian Navy. Rolls-Royce is among the few global engine makers capable of "marinising" aero engines at scale, making it viable to support both aerospace and naval propulsion through a shared supply chain in India.
Industry observers believe that Rolls-Royce's move to treat India as a "home market" underscores growing confidence among global aerospace and engineering majors in India's economic growth prospects and its role in global supply chains. For India, increased investments from Rolls-Royce are expected to support high-skilled job creation, technology transfer, and deeper integration into global aerospace and defense ecosystems.
