Guynextdoor2
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There is no such Indian engine on the market today, maybe in 5-10 years but not today- very few nations have such suitable products to date. The engine India is getting from Germany is top-spec and world-class so at least it will do the job.
Even TATA and AL- the giants of the HGV market in India use foreign engines on their trucks so it's no real surprise. They are working on indigenous products though.
DRDO had a program running on this. There previous prototypes produced a lot less power than planned, so those couldn't be used and I believe R&D continues. Having said that companies like Kirloskar have built complex engines for the Navy and have good capabilities here. I think they should give it a shot. The engine I think is about 40% of the cost right now.
Arjun MK-II user trials kicked off in Rajasthan - Times Of India
However, the German engine of Arjun Mk-I have again been integrated in MK-II as well despite claims of an indigenous engine as per the sources. Officials are attributing the same to the small order being proposed by Army and said that a separate plant for manufacturing engines cannot be put up for such limited order.