Manufacturing aero engines a challenge, says Rajnath Singh

Manufacturing aero engines remains a challenge for India and the country is in talks with global firms to develop the critical capability to power fighter planes, defence minister Rajnath Singh said on Thursday, drawing attention to a striking technology gap and steps being taken to overcome it.

“India in now on a par with developed nations in critical areas such as missile technology, submarines, aircraft carriers, artificial intelligence, drones, cyber defence and hypersonic systems. However, aero engine manufacturing is still a challenge,” Singh said at a defence conclave. His comments come at a time when the light combat aircraft (LCA Mk-1A) programme, crucial for the Indian Air Force (IAF) to shore up its fleet, is running behind schedule due to several reasons, including a delay in the supply of F404-IN20 engines by US firm GE Aerospace.

“But we have made progress under the Kaveri engine project. We are in discussions with global engine makers such as Safran, GE and Rolls Royce to build domestic capabilities,” Singh said. A derivative of the indigenous Kaveri engine, initially planned for fighter planes, is being developed to power armed drones.

To be sure, GE Aerospace has delivered the first of 99 F404-IN20 engines to plane maker Hindustan Aeronautics Limited (HAL) for Mk-1A fighters and is ramping up production to execute the Indian order. These engines are meant for the 83 Mk-1As ordered by the IAF for ₹48,000 crore in February 2021. The air force plans to order 97 more Mk-1As at a cost of around ₹67,000 crore.

Singh also referred to a deal HAL is negotiating with GE Aerospace for the joint production of F414 engines in India for the more advanced LCA Mk-2 programme. The deal will involve 80% transfer of technology (ToT) and is estimated to be worth around $1 billion.

“Work is also underway to develop engines for fifth generation fighter jets,” he said.

India is firmly pushing ahead with an ambitious plan to develop an indigenous fifth-generation stealth fighter, or the advanced medium combat aircraft (AMCA). Last year, the Cabinet Committee on Security (CCS) approved the highly anticipated project for the design and prototype development of the AMCA at a cost of around ₹15,000 crore. The project involves the design and development of five twin-engine AMCA prototypes, with the stealth fighter likely to go into production only after a decade.

The revival and strengthening of the defence sector through indigenisation and innovation is one of the biggest priorities for the government, Singh said. “The day is not far when India will not only emerge as a developed country, but our military power will also be number one in the world.”

Changing the mindset that the country can depend on imports to meet its defence needs was a big challenge, he said. “India will reduce its dependency on imports and create a defence industrial complex that will not only meet the country’s needs but will also strengthen export potential. India is moving ahead on the path of self-reliance in the defence sector, and it is also ready to play a very important role in making global supply chains resilient,” Singh said.

India’s defence exports touched a record high of ₹23,622 crore in the financial year 2024-25 on the back of policy initiatives and reforms, a growth of 12.04% over last year when the figure stood at ₹21,083 crore. India is looking at increasing defence exports to ₹50,000 crore by 2029.

While the country’s defence manufacturing capabilities are aimed at “national security and strategic autonomy”, they also offer protection against global supply shocks, he said, adding that the value of defence production had jumped from ₹40,000 crore in 2014 to over ₹1.27 lakh crore in 2024.

“This year, defence production should cross ₹1.6 lakh crore, while our target is to produce defence equipment worth ₹3 lakh crore by the year 2029.”