Rolls-Royce Plans Big Investment in India, More Jobs and Local Parts

Rolls-Royce is planning to invest a lot more in India. They want to create about 10,000 jobs and use many more parts made in India. This will help with airplanes, defense, and energy projects.
By Newsroom | Business, India |

Rolls-Royce, a prominent global engineering firm, has announced significant plans to increase its investment and operational footprint within India. This strategic move is anticipated to generate substantial employment opportunities and deepen local supply chain integration across defense, civil aviation, and energy sectors. The company's ambition to establish India as a strategic "home market" beyond its existing bases in the UK, the United States, and Germany suggests a long-term commitment aligned with India's national development objectives.

Rolls-Royce looking to scale up India investment; Potential for 10,000 jobs - 1

Context of the Expansion

The announcements, primarily made in early February 2026, follow a series of high-level discussions and public statements from Rolls-Royce executives, including CEO Tufan Erginbilgic, and meetings with Indian Prime Minister Narendra Modi. The core of the proposed expansion revolves around:

Rolls-Royce looking to scale up India investment; Potential for 10,000 jobs - 2

  • Workforce Growth: Aims to more than double the current workforce, potentially reaching approximately 10,000 employees. This includes a significant number of engineers.

  • Supply Chain Enhancement: Aims for a tenfold increase in local supply chain sourcing, benefiting numerous small and medium-sized enterprises.

  • Strategic Positioning: Establishing India as a third "home market," indicating a move towards deeper integration and capability development.

  • Sectoral Focus: Targeting defense, civil aviation, and energy sectors, with specific emphasis on potential co-development of a next-generation combat jet engine and localized manufacturing for naval and land systems.

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The company's engagement with India is framed within the broader context of India's "Viksit Bharat" vision, a national blueprint for economic development and self-sufficiency.

Rolls-Royce looking to scale up India investment; Potential for 10,000 jobs - 3

Evidence of Intentions

Multiple reports corroborate Rolls-Royce's stated intentions and the scope of its proposed Indian operations. Key details include:

Rolls-Royce looking to scale up India investment; Potential for 10,000 jobs - 4

  • Job Numbers: Rolls-Royce anticipates its initiatives could support approximately 10,000 jobs, representing more than double the current workforce of over 4,000 people employed within the Rolls-Royce ecosystem in India, which includes around 2,800 engineers.

  • Supply Chain: A stated goal is a tenfold increase in local supply chain sourcing.

  • Key Projects: Exploration of co-development of a next-generation combat jet engine is frequently cited, with indications of potential IP rights being jointly owned.

  • Meeting with Prime Minister Modi: Rolls-Royce CEO Tufan Erginbilgic met with Prime Minister Narendra Modi on multiple occasions, including early February 2026 and late December 2025. These meetings facilitated discussions on the company's expansion plans and alignment with India's national priorities.

  • Memoranda of Understanding (MoUs): Rolls-Royce plans to firm up two MoUs with defense public sector undertakings in India.

  • Global Capability Centre (GCC): Plans are in place to expand the GCC in India to become the largest such facility globally, focusing on complex manufacturing and high-value engineering capabilities.

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Deep Dives

Defense Sector Investments and Co-Development

Rolls-Royce is signaling a substantial engagement in India's defense sector, particularly in the development of advanced aerospace and naval propulsion systems.

  • Combat Jet Engine Co-development: The most prominent initiative mentioned is the potential co-development of a next-generation combat jet engine. This suggests a move beyond manufacturing or component supply to active participation in the design and engineering of critical defense hardware.

  • Naval Propulsion and Electric Capabilities: The company highlights its expertise in aero engine cores, which can be adapted for electric and hybrid propulsion naval engines. This capability is seen as crucial for enhancing the Indian Navy's combat readiness and addressing requirements for electric propulsion.

  • Localization for Indian Forces: Rolls-Royce is exploring opportunities to localize engine manufacture for the Indian Army, Navy, and Coast Guard, potentially including power solutions for critical infrastructure.

  • AMCA Engine Integration: Discussions have centered on how Rolls-Royce engines could support India's development of the Advanced Medium Combat Aircraft (AMCA), including the modification of engine cores for naval applications and electric propulsion.

Expanding Global Supply Chain and Manufacturing

The planned tenfold increase in local supply chain sourcing indicates a strategic shift towards making India a significant manufacturing and engineering hub for Rolls-Royce's global operations.

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  • Strategic Home Market: By designating India as a "home market," Rolls-Royce aims to integrate local capabilities into its worldwide strategic planning, akin to its existing bases in the UK, US, and Germany.

  • SME Integration: The expansion is intended to benefit numerous small and medium-sized enterprises (SMEs) within India, fostering a broader industrial ecosystem.

  • Global Capability Centre (GCC): Plans to expand the GCC into the largest globally suggest a significant investment in research, development, and engineering functions, underscoring India's growing importance in the company's innovation and business processes.

  • Intellectual Property (IP): There are indications that Rolls-Royce is open to jointly owning intellectual property rights for new developments originating in India.

Workforce Development and Skill Enhancement

The projected doubling of the workforce to approximately 10,000 employees signifies a major commitment to job creation and talent development in India.

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  • Engineers and Skilled Labor: The current presence of 2,800 engineers contributing to global programs highlights the existing technical capacity in India that Rolls-Royce intends to build upon.

  • Alignment with National Vision: The expansion is presented as being aligned with India's "Viksit Bharat" vision, emphasizing the creation of a developed and self-sufficient economy, and leveraging the country's "innovative and dynamic youth."

  • Technology Transfer: While specific details remain to be elaborated, the intention to transfer relevant technology and conduct engine design work in India suggests a focus on building local engineering expertise.

Expert Analysis

  • Sashi Mukundan, Executive Vice President, Rolls-Royce India: Has been a key figure in articulating the company's strategy, emphasizing India's role in future programs and the potential for co-development. He has highlighted the adaptability of Rolls-Royce's aero engine technology for naval and electric propulsion systems.

  • Prime Minister Narendra Modi: Has publicly welcomed Rolls-Royce's growing interest and expansion plans, stating that the government supports the company's enthusiasm for scaling up activities and partnering with India's workforce. This endorsement signals governmental backing for such industrial collaborations.

  • Lindy Cameron, British High Commissioner to India: Has welcomed Rolls-Royce's expansion plans, framing them as positive developments for bilateral economic ties.

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Conclusion and Implications

Rolls-Royce's articulated strategy points towards a significant deepening of its operational and strategic involvement in India. The company's intent to make India a "home market" suggests a comprehensive integration into its global framework, moving beyond a simple manufacturing or service provider role.

  • Economic Impact: The potential for 10,000 jobs and a tenfold increase in supply chain sourcing indicates a substantial positive economic impact, particularly for the manufacturing and engineering sectors.

  • Defense Industrial Capability: The focus on co-developing advanced defense systems, including combat jet engines and naval propulsion, could significantly bolster India's indigenous defense industrial capabilities.

  • Technological Advancement: The emphasis on technology transfer, joint IP ownership, and the expansion of R&D facilities suggests a pathway for advanced technological development and skill enhancement within India.

  • Strategic Partnership: The alignment with India's "Viksit Bharat" vision underscores a strategic partnership that aims to benefit both the company's global objectives and India's national development agenda.

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The firming up of MoUs with defense public sector undertakings will be a key indicator of the tangible progression of these plans. Further details regarding the specific nature of co-development projects and the scope of IP sharing will be crucial in assessing the full implications of this strategic expansion.

Sources Used:

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Frequently Asked Questions

Q: What is Rolls-Royce planning to do in India?
Rolls-Royce wants to invest more money and grow its work in India. They plan to make more jobs and use more parts made in India.
Q: How many jobs could this create?
The company hopes to create around 10,000 jobs. This is more than double the number of people they employ now.
Q: What parts of the business will this affect?
This plan is for their work in airplanes, defense, and energy.
Q: Will they make parts in India?
Yes, Rolls-Royce wants to use many more parts made by Indian companies. They aim to increase this ten times.
Q: Is this a long-term plan?
Yes, Rolls-Royce wants to make India a "home market," like the UK and USA, showing a long-term plan.