Adani Defence & Aerospace and Embraer announced a strategic collaboration to establish a regional aircraft manufacturing hub in India, aiming to boost indigenous production and expand regional connectivity.

The collaboration envisions covering the full aviation value chain—from pilot training and maintenance, repair and overhaul, to supply chain development—not just manufacturing.

Embraer notes its E-Jets have flown in India since 2005 and serves multiple sectors, with an expected demand for at least 500 regional jets (80–146 seats) over the next two decades.

A robust aftermarket ecosystem and expanded pilot training are highlighted as critical to lowering lifecycle costs, improving fleet availability, and enabling regional network growth.

Initial work will focus on assessing market demand and identifying viable aircraft size, range, and operating costs to ensure profitability and feasibility in a market with a longer payoff horizon.

The project anticipates broad economic and employment impacts, spanning manufacturing, logistics, software, materials, maintenance, and extensive training and services.

Policy recommendations include predictable demand or procurement incentives, supplier-development support, streamlined certification, and co-designed skill programs to build a sustainable aerospace workforce.

The ecosystem is expected to create employment across engineering, logistics, manufacturing, and aviation services, with emphasis on Tier 2 and Tier 3 cities through improved regional connectivity.

The focus on regional transport aircraft targets short routes to smaller cities, leveraging UDAN-era lessons that affordable, reliable air service expands regional mobility while reducing import costs and supply-chain vulnerability.

The collaboration is framed within broader geopolitical and economic contexts, including BRICS cooperation and responses to U.S. tariff policies affecting Brazil-India relations.

Joint market focus includes opportunities in India, the United Arab Emirates, and the broader MENA region, targeting long-term aerospace services growth.

Civil Aviation Secretary and Defence Secretary attended the event, underscoring strategic defense-aerospace implications and alignment with long-term capability building and global supply chain integration.