Adani, Embraer propose EUR175 final assembly line in India
TL;DR
Adani and Embraer propose a EUR175 million final assembly line in India for regional jets, supporting India's self-reliance initiative and aiming to boost domestic manufacturing and reduce import reliance. The partnership targets production within five years, leveraging Embraer's expertise and Adani's infrastructure to strengthen India's aviation supply chain and create jobs.
Adani, Embraer propose EUR175 final assembly line in India
Adani and Embraer Propose EUR175M Final Assembly Line for Regional Jets in India
On January 27, 2026, Adani Defence & Aerospace and Brazilian aerospace firm Embraer announced a strategic partnership to establish a final assembly line (FAL) for regional transport aircraft (RTA) in India, underpinned by a EUR175 million investment. The collaboration aligns with India's Aatmanirbhar Bharat (self-reliance) initiative and aims to advance domestic manufacturing of regional jets, addressing growing demand in the world's fastest-growing aviation market.
The MoU outlines phased indigenization of the RTA program, leveraging Embraer's engineering expertise and Adani's aviation infrastructure, including airport operations, MRO services, and pilot training. While specific timelines and locations for the FAL remain under finalization, Adani's Jeet Adani noted that decisions are expected within months, with production potentially commencing within five years. The partnership also seeks to strengthen India's aviation supply chain, reduce reliance on imports, and create high-skill employment.
India's regional aviation sector is expanding rapidly, driven by initiatives like the UDAN (Ude Desh ka Aam Nagrik) scheme, which has improved connectivity to Tier 2 and Tier 3 cities. Star Air, India's largest regional airline, currently operates 13 Embraer E175 and ERJ145 aircraft and is projected to place additional orders in 2026. Fiscal incentives for customers purchasing locally assembled aircraft could further stimulate demand, particularly as global OEMs face delivery delays until the mid-2030s.
Embraer, which already operates 50 aircraft in India across commercial and defense sectors, emphasized the partnership's potential to accelerate technology transfer and position India as a global aerospace hub. Adani's Ashish Rajvanshi highlighted the strategic alignment with national security priorities and the company's role in advancing indigenous UAV and avionics manufacturing.
The collaboration underscores India's push to transition from an aviation consumer to a producer, with the government noting that civil aircraft manufacturing is a logical next step after India's annual $2 billion aerospace sourcing footprint. With no immediate competitors in the regional jet segment, the Adani-Embraer venture is poised to capture a first-mover advantage in a market projected to grow significantly over the next decade.
