Rolls-Royce offers India fighter jet engine co-development deal

British engineering giant Rolls-Royce Holdings plc on Thursday announced an expansive plan to scale up operations in India, offering to co-develop a next-generation fighter jet engine with full intellectual property transfer while potentially creating 10,000 jobs across the defence, energy, and civil aviation sectors.

The announcement came a day after Rolls-Royce CEO Tufan Erginbilgic met Prime Minister Narendra Modi in New Delhi to discuss the company's ambitions to make India a "strategic home market."

Fighter Jet Engine Partnership

At the heart of the proposal is an offer to co-develop a 120 kN class combat jet engine core intended to power India's Advanced Medium Combat Aircraft (AMCA), a fifth-generation stealth fighter currently under development. Rolls-Royce, with backing from the UK government, has proposed what it calls "India's fastest route to an indigenous next-generation engine."

The co-development arrangement would provide full technology transfer with intellectual property ownership retained by India, supported by dedicated design facilities and manufacturing capabilities in the country. More than 1,400 Rolls-Royce engines currently power Indian defence platforms, including Jaguar combat aircraft, Hawk trainers, Arjun battle tanks, and various naval vessels.

Economic Impact and Jobs

The initiatives outlined by Rolls-Royce could more than double its workforce in India to approximately 10,000 people, according to the company. Rolls-Royce also projected a tenfold increase in its supply chain sourcing from India, which it said would benefit small and medium enterprises throughout the country.

"We are determined to partner India on its Atmanirbhar journey, by developing indigenous propulsion capabilities, providing sustained power to critical infrastructure and industry, and expanding local manufacturing for global supply chains," Erginbilgic said in a statement.

Part of Broader UK-India Partnership

The expansion builds on the India-UK Vision 2035 roadmap for bilateral industrial and defence collaboration. Prime Minister Modi welcomed the development on social media, noting India's openness to Rolls-Royce "scaling up its activities in India and partnering with our innovative and dynamic youth."

Beyond defence, Rolls-Royce is exploring partnerships for engine manufacturing for the Indian Army, Navy, and Coast Guard, as well as power solutions for critical infrastructure. The company also plans to expand its Global Capability Centre in India into its largest such facility worldwide.