Developing a robust aero engine ecosystem in India has become a strategic necessity in view of the changing nature of warfare towards smaller and more numerous weapons systems with matching or better efficacy. The use of Unmanned Aerial Vehicles (UAVs) or drones has seen phenomenal increase in recent years. UAVS are Artificial Intelligence (AI) enabled unmanned systems controlled by the pilot from the mothership via secure data links, and equipped with electro-optical and infrared sensors. Air-launched cruise missiles with terminal guidance have also gained traction in warfare.
All this necessitates developing an Indian military engine industrial base for small and large jet engines. Despite numerous strides towards indigenisation, the nation still has a long way to go in achieving total self-reliance in design, development and manufacture of aero engines. In this context, Delhi-based Insighteon Consulting ran an interactive wargame from 23 to 25 August 2022, with the participation of retired Defence Research and Development Organisation (DRDO) senior scientists, leaders from the Public Sector like Indian Space Research Organisation (ISRO), Hindustan Aeronautics Limited (HAL) , National Aerospace Laboratories (NAL), Gas Turbine Research Establishment (GTRE), and private industry players like Godrej Aerospace, Paninian India and Bharat Forge, academia, retired defence officers, bureaucrats, diplomats and members of various think tanks.
The wargame led to important takeaways which are summarised below:
The key to national defence security
The analysts concurred unanimously that maintaining and expanding an aero engine manufacturing capability within the country is critical to India’s national security. With export restrictions placed by foreign governments on engines of UAVs/ missiles and components thereof, India has no option but to develop its own aero engines as well as establish resilient supply chains for the products.
Since no established foreign design house(s) would like to part with development technology of expendable engines for cruise missiles and UCAV/ UAVs, the subject requires highest and immediate attention. The analysts stressed that self-sufficiency in engines is also vital to pursue our foreign policy objectives and to meet our future export obligations.
The analysts concluded that cash outflow for aero engines of present and future projects would easily exceed Rs 3 lakh crore in a period of 20 years. Thus it is necessary to put in dedicated effort towards indigenisation of gas turbine engines for self-reliance.
The small engine gas turbine market
The first “Drone War” in the Russia-Ukraine conflict proved that the manned aircraft did little in terms of air defence. Both long-range radar-guided systems and portable shoulder-launched weapons kept the number of manned sorties to a minimum. For the purposes of aerial intelligence and anti-armour role, drones replaced manned aircraft to a great extent.
Piston engines are suitable for low-altitude, low-speed and low take-off weight UAVs. For larger range drones, gas turbine engines are bound to become the first choice due to greater reliability and greater thrust-to-weight ratio. The small aero engine market, in a block of 20 years, post-2028, is estimated to be of Rs 61,000 crore:
Small Engine Market: 20 Years

Rope in academic institutions, national laboratories and Indian private industries
The analysts were of the opinion that the involvement of the private sector has been limited to development of spares or indigenisation of components of aero engines. Aero engine R&D remains a monopoly of the public sector. In other countries like Korea and Turkey, long term partnerships exist between respective governments and the private sector. It was unanimously recommended that the MoD should create an environment to tap the entrepreneurial energy of the private sector to bridge the technological gap.
The analysts recommended that efforts should be made to select private industries with identified academic institutions to take up the challenge of developing three to four small engines for identified aerial platforms in a co-develop, co-engineer and co-manufacture mission mode, through funded programs, which if required could be mentored and managed directly by technology labs or user services.
Make it a level playing field
It was felt that the time is apt for tapping the resources of the private sector in design, development as well as in production, overhaul and maintenance, repair and operations (MRO) activities.
Limited utility of co-development models with foreign players
The analysts predicted that in all probability co-development models will end up as a licensed production, where a major amount of the high cost work-share stays allotted to a foreign collaborator. Lack of competence in design and development will continue to pose serious problems for development of new designs, any modifications or mid-life upgrades.
In order to become self-reliant in the field of aero engines, it is necessary to nurture and develop local design talent, have more design assist educational institutions, a comprehensive design policy and a design council, exclusively for aero engines.
Put restrictions on import of small aero engines
The analysts figured that it will be encouraging to the public and private industry if small engines are added to the forthcoming “positive list of indigenisation”. This will certainly allow the Indian technology prowess to emerge as it shows the seriousness of the Ministry of Defence to indigenise.
Avoid lack of testing facility that led to a delay of six years in the Kaveri engine development
Testing overseas is impractical and exposes critical technology to other nations. It is estimated that a delay of approximately six years could be attributed to the absence of HAETF/ FTB and other component levels in country test facilities, during the development of the Kaveri engine.
The analysts were hopeful that engine test facilities will be given the highest priority.
Release RFQs for smaller engines to private entities too
The analysts were of the opinion that, keeping the strategic necessity and the lost time in mind, it would be more preferable to follow a 2 plus 1 model, where there is concurrent development of smaller engines by one DRDO lab and two private sector entities, in order to build in competition and redundancy. The government labs like ADE/NAL should release RFQs for smaller engines to private entities also, in addition to GTRE/HAL.
Revisit DcPP model
The analysts observed that the Development cum Production Partner (DCPP) programme provided by DRDO which allowed the private sector to co-develop systems and have the rights to manufacture as well, is a good idea on date. DcPP model could be rethought by making it a consortium of a DRDO/CSIR lab, DPSUs, private sector, academia and even the user.
Utility of the Special Purpose Vehicle (SPV) model
The analysts were of the opinion that the SPV model was suitable only for development of the 110 kN class of engines by incorporating a private limited company with stakeholders being GTRE, two private sector companies and with a foreign original equipment manufacturer (OEM), in consultancy mode.
Self-certification for non-critical and semi-critical parts
Self-certification by the design departments of developmental agencies and self-inspection by Quality Assurance (QA)/ Quality Control (QC) departments of manufacturing agencies may be instituted for non-critical and semi-critical parts/components.
Need to increase interaction with the Academia
In the design and development of aero engines, the participation of academic institutions can play an important role with enthusiastic students, advanced diagnostic tools which industry cannot afford, and excellent computational skills. It was encouraging to hear that a Centre of Propulsion Technology (COPT) has been established, with DRDO funding at IIT Bombay as the host Institute and a few institutes of national importance e.g. IIT Madras, SVNIT Surat, IISc Bangalore, as the initial participating institutes.
The MRFA deal comes handy to leverage knowledge gaps
The analysts recommended that the Multi-Role Fighter Aircraft (MRFA) deal provides the opportunity to leverage appropriate knowledge gaps pertaining to development of aero engines, which improves our TRL levels, as this deal will be the last major aviation-related direct procurement deal for a long time to come
Floating national defence bonds
In case the defence budget is a limiting factor, the analysts recommended that the government could revisit its proposal of floating national defence bonds to meet any shortfall in resources and to ensure that requirements of testing equipment etc are not stunted due to paucity of funding.
Management Structure
A newly created apex body or a module titled National Commission for Aero Engine Development (NCAED) was recommended with a vision to in-house develop a family of aero-engines of various classes of airborne equipment starting from UAVs, drones, turbo-starters for auxiliary power and engine starts followed by aero-engines for helicopters, trainers / transport aircraft and eventually higher technology fighter aircraft aero-engines.




