The thing is given structure and mindset of our MoD and its extended arm ie psu MIC, a pvt led engine development is unlikely since the product may not find a user. This is ignoring the obvious caveat of required resource for such a (first time) development work to proceed which no pvt entity would be willing to or want to take. Even the jv route has not happened with foreign oem which would be basically a licence prod via pvt line due to strategic nature of jet engine tech and lack of order prospect. The enabling / supporting ecosystem of supplier & vendor industries is also not enough developed within the country. There are few niche companies doing specific work in the country but often the defence ecosystem have shunned those before as a close guarded industry (NDA signing for all work, issue with timeline and very erratic order schedule etc).
As for the state led, still no jv agreement signed in 2025. that should answer the question. Govt also do not see value in it, because sustaining the same need too much resource they would rather allocate to panic buying and cut off the maintenance up-keeping part.
I am only commenting on the optimal route for engine development. Not saying govt is taking one.
As for defense ecosystem.. there are two phases in engine development.
A) One is design and prototype. During that phase, the private players will learn a lot, realise what things they need and can spread the intent their needs through academic Collab, presenting the gaps to govt, msme unions etc.. which helps the society on building the ecosystem. And just because one consortia is leading the development , doesn't mean individual industry players cant focus on scaling their capabilities to embed into supply chain.
You see, that's the difference b/w a state led initiatives and private led.. private led initiatives create demand, and that demand opens up avenues for many people to embed themselves into supply chain. This phase is a long term project.
2nd phase. Induction and production. That means you've got a working engine , certified. Unlike state beauracracy.. private players create production lines faster and start sooner. Since they don't need to wait to push files.
Then there two possible outcomes:
a) It's superior or sooner than state led initiative. Order will come ( govt needs to support, which helps in development of private aerospace industry) it does it for many other industry and it has shown willingness to support private sector in every critical domain.
B) either it's late or inferior to state led ( good for India for having good engine) but still, that's why I mentioned that private led initiative should be with a JV with a firm with experience in advanced engine. While state can go for a blank sheet with a partner with expertise in foundation but not 5th gen or 6th gen yet. Complimenting strengths.
So, even in a less desirable for IAF.. it will still be a very potential engine and the tech absorbed will have trickle down effect in Indian engineering space. As for direct monetary matters, African, south asian, and many other nations will prefer a relatively cheaper, well built engine even if it's not the best of the world. It fits their operational needs and since we have home grown expertise in airframe, aesa radar and other components.. private sector with license from either DRDO or HAL can even make a export version of FA. Or just export engines at lower cost. There will be many takers who don't wanna be dragged into us-china high value tussle but still want some capability.
That's what turkey is banking on. But our advantage over turkey is that our armed forces have very strict user trials.. and most of this systems they end up inducting proves their decision to be correct. Which has domino effect on psyche of other nations too.