Adani-Embraer pact marks new phase in India’s Regional Aircraft manufacturing push

Adani Defence & Aerospace and Brazil’s Embraer have taken a significant step toward establishing a Final Assembly Line (FAL) in India for the E175 regional jet, marking a major expansion of the country’s civil aircraft manufacturing ambitions.

An enhanced Memorandum of Understanding (MoU) was exchanged on Saturday in the presence of Brazilian President Luiz Inácio Lula da Silva and Union Commerce and Industry Minister Piyush Goyal . The move builds on the strategic collaboration announced by the two companies on January 27 and signals a transition from intent to execution.

According to a joint release, the partnership aims to develop an integrated Regional Transport Aircraft (RTA) ecosystem in India, encompassing aircraft manufacturing, supply chain development, aftermarket services, pilot training and the securing of aircraft orders to support the proposed assembly line.

The Embraer E175 , which can seat up to 88 passengers, is designed for high-frequency regional operations and is expected to play a key role in connecting India’s Tier-2 and Tier-3 cities markets that remain underserved by larger narrow-body aircraft. Industry estimates suggest India will require at least 500 aircraft in the 80–146 seat category over the next 20 years , driven by rising domestic travel and the government’s regional connectivity push.

Embraer President and CEO Francisco Gomes Neto said the E175 has a proven global track record and that India represents a critical growth market for regional aviation. Adani Defence & Aerospace Director Jeet Adani noted that initiatives such as the UDAN scheme have made the creation of an indigenous regional aviation ecosystem strategically important for economic expansion.

India’s aerospace manufacturing sector has historically been dominated by Hindustan Aeronautics Limited (HAL) , which produces military aircraft and helicopters such as the Tejas fighter jet and Dhruv helicopter. However, the sector has expanded rapidly over the past decade with the entry of private players and global partnerships.

There are now over 10 major aerospace and defence manufacturers operating in India, including Tata Aerospace & Defence, Mahindra Aerospace, Larsen & Toubro, Dynamatic Technologies and Adani Defence & Aerospace, alongside joint ventures with global firms such as Airbus and Boeing for components and helicopter assembly. Most of this activity has so far focused on defence platforms, structures, avionics and maintenance, repair and overhaul (MRO), rather than full-scale commercial aircraft assembly.

The proposed Embraer-Adani FAL would therefore be among the first large-scale initiatives to assemble commercial regional jets in India, complementing existing defence-focused manufacturing and aligning with the government’s “Make in India” and “Atmanirbhar Bharat” objectives.

Analysts say the project could help position India as a regional hub for smaller commercial aircraft, create skilled jobs, and deepen domestic aerospace supply chains. If successful, it may also pave the way for further collaborations with global aircraft makers seeking to tap into India’s fast-growing aviation market.