Rolls-Royce to make India its ‘home market’? Here's the list of investments that it plans to make

British aero-engine maker Rolls-Royce said on Sunday, December 28, that it is considering making India its third “home market” outside the United Kingdom, as part of its strategy to tap into the full range of business opportunities across various sectors.

In an interview to PTI, Sashi Mukundan, the executive vice president of Rolls-Royce India, elaborated on the details of the move, revealing that the company is planning a “big investment” in the country.

Through these major investments, Rolls-Royce seeks to expand its footprint in the country, noting that India has “scale, policy clarity and a strong push” towards a defence and industrial ecosystem, which is expanding rapidly and becoming more sophisticated with time.

Which sectors will the company tap?

The investments will be made in various sectors, including jet engines, naval propulsion, land systems and advanced engineering.

Mukundan specifically listed developing a next-generation aero engine in India as a priority to power the combat jets that New Delhi will produce under the Advanced Medium Combat Aircraft (AMCA) programme.

He said the AMCA engine core could be modified for use as a naval marine engine and even for electric propulsion. He added that Rolls-Royce is one of the few engine makers in the world with the capability to convert an aircraft engine for marine use.

In the conversation with PTI, Mukundan also briefly touched upon the commercial aviation sector in India and described it as a rapidly growing market where Rolls-Royce has the most advanced technology to offer, which will aid in the country growth.

“We are already partnering in expansion plans of some of the biggest carriers in the country,” he said.

MOUs to be signed

The senior executive also said the company will finalise two Memorandums of Understanding (MoUs) with two Indian defence public sector undertakings. One agreement will cover the manufacturing of engines for the Arjun tanks, while the other will focus on engines for future-ready combat vehicles.

During a business roundtable which took place in October this year, CEO Tufan Erginbilgic had conveyed to Prime Minister Narendra Modi that India is going to be “very critical” for Rolls-Royce in the near future.

“We have developed two other home markets outside the UK — the US and Germany. We want to make India our next one. What do we mean by that? We want to do everything across the field, and it's not just defence,” Mukundan told the news agency.

According to the top executive, the company's ambition spans across defence, naval propulsion, land systems, manufacturing, advanced engineering skills and technology development, all of which closely align with India's own priorities.

Speaking about the development status on the engines for AMCA, he informed that extensive discussions and background work are currently underway, which will eventually determine how the company plans to move forward.

Engine design work to be done in India

Mukundan also said that the entire engine design work can be carried out in India, provided the necessary technology is transferred, with intellectual property (IP) rights to be jointly owned with India.

“Once you own design IP, you have strategic control. Manufacturing then becomes the next stage, and that is always more complex. It's about ensuring that capability is built systematically and safely,” he noted.

Stating the importance of the project, he said Rolls-Royce engines for AMCA could be helpful for India in developing electric propulsion for naval engines. The company has expertise in aero engine core, which are used in building electric and hybrid propulsion naval engines.

Rolls-Royce goes “bullish” on India

The executive vice president expressed strong optimism about India, highlighting the Indian government's “visible focus” on building indigenous capabilities across naval, land and air 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 said during the interview.

He further said that India is not merely an important market for Rolls-Royce, but is also a long-term strategic home for the company, underlining his bullish stance on the country's growth potential and its expanding role in the global aerospace and defence ecosystem.