The trade pact, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed in London last month.
The UK–India Free Trade Agreement (FTA) is expected to benefit Rolls‑Royce by reducing tariffs on aerospace components, as well as strengthening bilateral supply chains, a senior official with the aerospace giant told businessline.
Speaking to businessline, John Kelly, Senior Vice President – Customers, Asia Pacific, Rolls‑Royce, said that the tariff reduction measures will not only streamline sourcing and operations but also reinforce the company’s decades-long partnership with India’s aerospace sector.
The trade pact, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed in London last month.
Vision 2035
Kelly told businessline that the FTA, in conjunction with the UK–India Vision 2035 roadmap, offers a renewed framework for deeper collaboration in defence and advanced propulsion technologies.
The company, he said, is particularly keen on co-developing next-generation power and propulsion systems in partnership with Indian entities.
Kelly emphasised that the FTA and Vision 2035 framework streamline technology transfer, accelerate supply-chain integration, and speed innovation cycles.
These mechanisms align exceptionally well with India’s national ‘Make in India’ vision. Rolls‑Royce already employs over 2,000 engineers in India, across internal operations and partnerships.
In Bengaluru, their engineers contribute to global civil aerospace development programmes, while their data-science teams act as a global centre for analytics-driven innovation.
Beyond product delivery, Kelly reaffirmed Rolls‑Royce’s commitment to expanding its sourcing footprint from India.
He revealed that over the next five years, the company aims to double its India-based supply chain presence, leveraging strong partnerships with HAL, Tata, Bharat Forge, Godrej & Boyce, and more. International Aerospace Manufacturing Pvt Ltd — a joint venture with HAL based in Bengaluru— now produces over 160 high-precision aero-engine components, with a second manufacturing facility recently established in Hosur, Tamil Nadu.
Nevertheless, when asked whether Rolls‑Royce planned to establish an MRO (Maintenance Repair & Overhaul) facility in India, Kelly clarified that no concrete plans have been confirmed at this time.
However, he mentioned the company is exploring expansion of its global MRO network in due course.
Kelly further noted that Rolls‑Royce continues to support India’s regional aviation growth via the UDAN programme.
He cited the AE3007‑powered Embraer ERJ 145s operated by Star Air and the RB211‑535‑powered Boeing 757‑200Fs flown by Blue Dart as examples of existing operations benefitting from their engines.
Published on August 5, 2025
