MercoPress. South Atlantic News Agency

India’s Adani partners with Embraer to build regional aircraft

Aerospace specialists note that the announcement comes amid growing competition for orders from regional airlines and fleet-renewal campaigns across Asia

Indian conglomerate Adani Group and Brazilian plane maker Embraer announced on Tuesday that they have signed a memorandum of understanding aimed at cooperating on the production of regional aircraft in India. The agreement calls for establishing a domestic supply chain and a final assembly line for Embraer’s E2 family of jets, which seat between 70 and 146 passengers, as well as developing maintenance services and pilot-training programmes. It also leaves the door open to potential local manufacturing of Embraer’s C-390 military transport aircraft.

Arjan Meijer, president of Embraer Commercial Aviation, said the alliance combines the Brazilian company’s 50 years of aircraft-design expertise with the industrial and logistical capabilities of the Indian group. “The E2 family is perfect for the Indian market, which is growing rapidly and needs efficient aircraft for regional routes,” he said.

Ashish Rajvanshi, chief executive of Adani Defence & Aerospace, noted that the agreement is part of the government’s “Make in India” initiative to bring advanced manufacturing to the country. “Our vision is to create a complete civil-aviation ecosystem — from manufacturing through training and aftermarket support — that generates jobs and strengthens India’s self-reliance,” he said.

If realised, it would be the first time narrow-body commercial aircraft from a global manufacturer are assembled in India. The country’s aviation market has expanded rapidly, driven by the rise of low-cost carriers and surging domestic demand, but it still relies almost entirely on imported aircraft from Airbus and Boeing.

Embraer, the world’s third-largest planemaker, aims to capitalise on a gap in the regional-jet segment, a niche that could support routes between medium-sized cities that are not yet connected by direct flights. Adani Group, one of India’s largest infrastructure conglomerates, has in recent years expanded into defence and aviation with investments in airports, drones and missile systems.

This is not Embraer’s first attempt to secure an Indian partner. In 2023 it reached an agreement with local company Mahindra to market its C-390 transport plane to the Indian Air Force, but the tender has not yet been resolved. Analysts say the new alliance with Adani could give Embraer an edge in future procurement by providing an industrial base within India.

Aerospace specialists note that the announcement comes amid growing competition for orders from regional airlines and fleet-renewal campaigns across Asia. Airbus and its subsidiary ATR dominate the turboprop market for 50- to 70-seat aircraft, while the Airbus-Boeing duopoly controls the larger single-aisle segment. Embraer’s entry with a local partner could diversify the offering and open opportunities for suppliers from Latin America and Europe. Still, the memorandum is only a statement of intent and will require regulatory approvals and concrete contracts before it can be realised.