India’s Ministry of Defence is set to invest approximately $7 billion in the co-development of a sixth-generation jet engine for the AMCA Mk-2, signaling a major push toward advanced aerospace self-reliance. As per idrw.org sources, the DRDO’s GTRE has been instructed to recommend a foreign partner by the end of 2025, with contract finalization targeted within the same timeline under close PMO oversight.
The core development budget of around $5 billion will cover design, prototyping, and initial testing. Advanced discussions are underway with global players such as Rolls-Royce, Safran, and General Electric. Rolls-Royce leads with a clean-sheet design and full IPR transfer offer, Safran emphasizes its proven India partnerships, and GE brings strong technical experience despite geopolitical sensitivities.
However, the announced $7 billion excludes several critical components, including testing infrastructure, production facilities, flying test beds, and workforce development. Given India’s limited aero-engine ecosystem, these additional requirements could push the total program cost closer to $10 billion.
Key cost drivers include the need for advanced ground testing facilities, acquisition of a flying test platform, development of manufacturing infrastructure, and extensive human resource training. Moreover, provisions for future upgrades and scalability will require continued investment.
Overall, while the initiative represents a transformative step in India’s defence capability, its success will depend on addressing infrastructure gaps and ensuring sustained long-term funding comparable to global programs like NGAP and GCAP.
