Gautam Adani-led Adani Group has entered into a partnership with Brazilian aircraft manufacturer Embraer S.A. to establish a small-jet manufacturing facility in India.
Adani Defence and Aerospace, an Adani Enterprise Ltd subsidiary, will zero in on the project site—to be Embraer’s first production facility in Asia—“over the next couple of months”, the company’s director Jeet Adani said on Tuesday.
“Together, we will establish a regional aircraft manufacturing facility in India and a one-of-a-kind aviation ecosystem, a project that will redefine the future of aviation in our country,” he said while announcing the landmark deal, which marks the Adani Group's entry into aircraft manufacturing.
“We have some sites in mind and are working on them. In the next couple of months, we will come back with the details, including investment and aircraft type to be manufactured,” he added.
Embraer, the third-largest civilian aircraft manufacturer behind The Boeing Co. and Airbus S.E., manufactures the Embraer Regional Jet and E-Jet families of narrow-body, short- to medium-range passenger aircraft. It also makes private jets, defence aircraft, and agricultural planes.
It would be the first of the three to have a final-line assembly (FLA)—manufacturing facility where aircraft are assembled—in India. Boeing and Airbus source components from Indian component makers but do not have assembly units here.
“This partnership is more than just a business agreement. It is a vision taking flight. It represents India's determination to build world-class aviation capabilities on our own soil, aligned with the national mission of Atmanirbhar Bharat," Adani said.
He added that discussions were underway with customers for orders. None of the major domestic carriers—IndiGo (Interglobe Aviation Ltd), Air India, Spicejet Ltd and Akasa Air—operate Embraer jets.
Regional airline Star Air is the only carrier with an Embraer fleet of 8 jets. The company plans to place orders for Embraer jets in the coming days.
Focus on regional connectivity
Embraer’s FLA will produce smaller aircraft suited for the country’s regional connectivity, Arjan Meijer, president and chief executive, Embraer Commercial Aviation, told Mint.
“India is a pivotal market for Embraer, and this partnership combines our aerospace expertise with Adani’s strong industrial capabilities and commitment to indigenization,” Meijer said.
“Together, we will evaluate the most viable, advanced, and efficient solutions in support of India’s RTA (regional transport aircraft) ambitions, and their potential for implementation,” he added.
Earlier, the Brazilian aircraft maker had set up a subsidiary in the country for sourcing components and parts for its aircraft. It also tied up with the Mahindra Group in October 2025 to make the C-390 medium transport aircraft for the Indian Air Force.
The type of aircraft to be manufactured in the latest facility is yet to be decided. It could be either the E-175 (a 76-seater regional jet) or the Embraer E195-E2, the largest and most advanced variant in the E-Jet E2 family, having up to 146 seats in a 2+2 configuration.
“It would be one of these two, perhaps. We are yet to decide on that,” Meijer said, adding that these are the two most popular models under discussion and suited for India’s regional connectivity plans.
Both these would be small- to medium-sized jets, a senior civil aviation ministry official said on the condition of anonymity.
“We need to build a supply line. We need it here in India; we can do that. Initially, the components will be coming from Brazil. But we will build the supply line here too,” the official said.
“This collaboration reflects the evolving character of India's defence and aerospace engagement with the world, one which is increasingly based on partnership, capability building, and long-term strategic alignment," said defence secretary Rajesh Kumar Singh, who was at the event marking the signing of a memorandum of understanding (MoU) between Adani Defence and Aerospace and Embraer.
“Aircraft assembly represents the convergence of advanced manufacturing, precision engineering, quality assurance, and certification, as well as global supply chain integration. By bringing this capability to India, we are moving decisively up the value chain from being primarily a market for aircraft to becoming a participant in their production,” he added.
A long way to go
Experts, however, say it could take at least 5-7 years for the first aircraft from the facility to actually take off.
“It is still a long shot. Setting up a production line and certifying the aircraft variant for India can take up to 10 years. The JV will need a rudimentary supply base of local component vendors, too. And we need to see how the partnership progresses. But, yes, India does need jet aircraft in the 70- to 120-seat category to connect smaller towns. But a subsidy-based model won’t work,” said Mark D. Martin, aviation expert and chief executive of Gurugram-based Martin Consulting.
India has been pushing for increased regional connectivity through the UDAN Scheme. It has been subsidizing ticket fares (including putting price caps to make it affordable) to push small-town connectivity.
There are three private-sector players—Star Air, FLY91, and IndiaOne—and one state-run company, Alliance Air, that focus on regional routes. Larger players like Air India and Akasa Air have stayed away, mostly citing viability concerns and aircraft availability. IndiGo and SpiceJet do operate on select routes.