India’s Ministry of Defence (MoD) is preparing to make a significant strategic investment in its aerospace capabilities, with an estimated allocation of approximately $7 billion for the co-development of a sixth-generation jet engine intended for the Advanced Medium Combat Aircraft (AMCA) Mk-2. According to sources referenced by the Indian Defence Research Wing (idrw.org), this initiative marks a major step toward strengthening indigenous defence technology.
The Gas Turbine Research Establishment (GTRE), operating under the Defence Research and Development Organisation (DRDO), has been tasked with submitting recommendations on selecting an international partner by the end of 2025. The MoD aims to finalize the agreement within the same period. Closely monitored by the Prime Minister’s Office (PMO), this program reflects India’s broader objective of achieving self-reliance in advanced propulsion systems.
However, the allocated $7 billion does not include several essential components such as ground testing infrastructure, flying test beds, production facilities, and workforce training. Due to India’s limited aero-engine ecosystem, these additional requirements could raise the total program cost to nearly $10 billion.
Out of the overall allocation, approximately $5 billion is expected to fund the core co-development phase, including engine design, prototype development, and initial testing. Negotiations with leading global aerospace companies—Rolls-Royce, Safran, and General Electric—have progressed significantly. Each company has proposed detailed frameworks covering technology transfer (ToT), workshare arrangements, and intellectual property rights (IPR). Rolls-Royce has emerged as a strong contender due to its Tempest program expertise and willingness to offer full IPR transfer, while Safran highlights its long-standing collaboration with India. General Electric remains competitive, leveraging its experience with the F414 engine, though geopolitical factors may influence the final decision.
Despite this progress, several critical cost elements remain outside the current budget. These include the establishment of advanced ground testing facilities, development of a flying test bed for in-flight validation, investment in production infrastructure such as tooling and advanced manufacturing systems, and extensive training programs to build a skilled workforce. Additionally, future scalability and upgrade programs, including Engine Core Upgrades (ECU), will require further research and development investments.
Taken together, these factors could elevate the total cost to around $10 billion, aligning with global sixth-generation engine initiatives such as the U.S. NGAP and the GCAP program. India’s prior experience with the Kaveri engine program further highlights the necessity of robust infrastructure and sustained investment to ensure long-term success.
