After Airports, Adani Now to Manufacture Aircraft in India in Collaboration with Brazil’s Embraer

New Delhi: India is poised to join the elite group of countries that manufacture aircraft, as Adani Group partners with Brazilian aerospace company Embraer to produce small and medium-sized airplanes domestically. Embraer is renowned globally for aircraft seating between 70 and 146 passengers and already has a presence in India.

According to a report by TOI, the two companies have signed a memorandum of understanding (MoU) to set up a final assembly line (FAL) in India under the Make in India initiative. While the exact location, investment size, and operational timeline of the FAL are yet to be finalized, an official announcement is expected during the upcoming Hyderabad Airshow later this month.

Boost to India’s Aviation Ecosystem
The collaboration is expected to incentivize customers who place orders for commercial aircraft manufactured in India. Officials believe it will not only help build a complete domestic aviation ecosystem but also encourage global giants like Airbus and Boeing to establish full assembly lines in the country. A senior government official explained, “Financial incentives will likely be offered to early buyers of aircraft from this FAL. Like any new program, the incentives will gradually decrease as orders increase — for example, after every 50 orders.”

Existing Embraer Presence in India
Embraer aircraft are already in operation in India for commercial, defense, and business aviation purposes, with around 50 planes in use. Currently, Star Air is the only commercial airline operating Embraer aircraft. With delivery timelines from Airbus and Boeing stretching into the mid-2030s for new orders, Indian startups planning regional flight services are looking at Embraer planes as a viable solution.

Market Potential
According to Embraer Senior VP Raul Villaron, India represents a substantial market for aircraft seating 80 to 146 passengers, with an estimated demand of 500 aircraft over the next 20 years. Subha Aviation MD Gautam Sahni added that the Indian regional aviation market is poised for significant growth due to the opening of Tier II and III city airports and enhanced connectivity from new airports in Delhi and Mumbai. Sahni intends to base his operations at the new Noida airport.

This partnership marks a major milestone for India’s aviation ambitions, combining domestic manufacturing capabilities with global aerospace expertise and signaling a new era for commercial aviation in the country.