In a significant strategic announcement, British engineering giant Rolls-Royce has revealed its intention to establish India as its third core "home market" globally, following the United Kingdom, the United States, and Germany. The declaration, made on Sunday, December 28, underscores a deep commitment to tap into India's rapidly expanding industrial and defence sectors through substantial future investments.
Strategic Expansion and Key Investment Areas
In an exclusive interview with PTI, Sashi Mukundan, Executive Vice President of Rolls-Royce India, detailed the company's ambitious plans. He cited India's "scale, policy clarity and a strong push" towards building a sophisticated defence and industrial ecosystem as the primary drivers for this strategic pivot. The investments are poised to span multiple high-tech domains.
The company will channel funds into developing next-generation technologies for jet engines, naval propulsion systems, land-based combat vehicle engines, and advanced engineering. A top priority is the co-development and manufacturing of a new aero-engine in India to power the indigenous Advanced Medium Combat Aircraft (AMCA) programme.
Focus on AMCA and Dual-Use Technology
Mukundan highlighted the versatility of the planned AMCA engine core, noting it could be adapted for use as a naval marine engine and even for future electric propulsion systems. "Rolls-Royce is one of the few engine makers in the world with the capability to convert an aircraft engine for marine use," he stated, emphasizing a unique technological advantage. He confirmed that extensive discussions are currently underway to finalize the roadmap for the AMCA engine project.
Critically, Mukundan asserted that the entire engine design work can be executed within India, contingent upon the necessary technology transfer, with Intellectual Property (IP) rights to be jointly owned. "Once you own design IP, you have strategic control. Manufacturing then becomes the next stage," he explained, outlining a phased approach to building sovereign capability.
Forging Partnerships with Indian Defence PSUs
As part of its local integration strategy, Rolls-Royce is set to formalize its collaboration with the Indian defence industry. The company will soon finalize two Memorandums of Understanding (MoUs) with Indian defence public sector undertakings.
- One agreement will focus on the manufacturing of engines for the existing Arjun main battle tanks.
- The second MoU will concentrate on developing engines for future-ready combat vehicles.
Beyond defence, Mukundan also pointed to India's booming commercial aviation sector, where Rolls-Royce is already partnering with major Indian carriers for their expansion, offering its most advanced engine technology.
A "Bullish" Long-Term Vision for India
Rolls-Royce's confidence in India is unequivocal. Mukundan expressed a "bullish" stance, noting the Indian government's visible focus on building indigenous capabilities across air, land, and naval domains. "Over the long term, India will be a major global power. And India is increasingly supporting others in the Global South. For us, there is a lot to work with, and it is all linked," he remarked.
This sentiment echoes the message conveyed by Rolls-Royce CEO Tufan Erginbilgic to Prime Minister Narendra Modi during a business roundtable in October 2024, where he stated that India would be "very critical" for the company's future. By aiming to make India a home market, Rolls-Royce commits to a holistic presence—encompassing defence, manufacturing, skills development, and technology co-creation—closely aligning with India's national priorities and its ascent in the global aerospace and defence order.
