Adani and Embraer Advance Plans for E175 Final Assembly Line in India

India’s ambitions to build a homegrown regional aviation manufacturing ecosystem took a tangible step forward this week as Adani Defence & Aerospace and Brazilian aerospace manufacturer Embraer exchanged an enhanced Memorandum of Understanding (MoU) to explore establishing a Final Assembly Line (FAL) for the Embraer E175 regional jet in India. The agreement was formalised in the presence of Brazilian President Luiz Inácio Lula da Silva and India’s Minister of Commerce & Industry, Piyush Goyal, underlining the diplomatic as well as industrial significance of the proposed partnership.

The updated MoU builds on an initial agreement signed in January and outlines a broader roadmap aimed at developing an integrated Regional Transport Aircraft (RTA) manufacturing and support ecosystem in India. Beyond final assembly, the collaboration envisages opportunities across aircraft manufacturing, supply chain development, aftermarket services, pilot training and, critically, the securing of aircraft orders to underpin the long-term viability of a domestic production line.

For India, the proposal aligns neatly with the government’s Aatmanirbhar Bharat (self-reliant India) agenda and its push to deepen domestic aerospace industrial capability. Regional aviation has emerged as a strategic priority under the UDAN (Ude Desh ka Aam Nagrik) scheme, which aims to connect Tier 2 and Tier 3 cities to the national air transport network. While connectivity has expanded rapidly, much of the equipment serving these routes remains imported, with limited domestic industrial participation beyond maintenance and support.

Adani Defence & Aerospace, part of the Adani Group’s expanding aviation and defence portfolio, has positioned itself as a cornerstone of this emerging ecosystem. The company already operates one of India’s largest private MRO networks and is scaling pilot training and aerospace manufacturing capabilities across multiple domains. According to Jeet Adani, Director of Adani Defence & Aerospace, regional aviation will be central to India’s next phase of economic growth. He noted that improved connectivity between smaller cities is increasingly vital for business, tourism and regional development, and that the partnership with Embraer brings together complementary strengths from both sides.

From Embraer’s perspective, India represents one of the most promising growth markets for regional aviation over the next two decades. Industry forecasts suggest the country will require at least 500 aircraft in the 80 to 146-seat category during this period, driven by rising passenger demand, congestion at major hubs and the need for efficient short-haul connectivity. The E175, seating up to 88 passengers, has built a strong global reputation for reliability, operating economics and suitability for high-frequency regional services, characteristics that fit squarely with India’s evolving route structure.

Embraer President and CEO Francisco Gomes Neto described the agreement as a critical milestone in shaping a long-term aerospace partnership in India. Beyond the commercial opportunity, Embraer has steadily expanded its footprint in the country, with nearly 50 aircraft across commercial, defence and business aviation currently in service. The proposed FAL would represent a significant deepening of that relationship, moving from sales and support into industrial participation and local capability development.

Strategically, the MoU also reflects the strengthening of defence and industrial ties between India and Brazil. Both countries have sought to diversify their international partnerships and reduce reliance on traditional aerospace suppliers. Embraer’s collaboration with an Indian industrial heavyweight offers access to a rapidly expanding market and potential long-term production efficiencies. India will benefit greatly from collaborating with an established regional aircraft manufacturer, offering a practical entry into a segment of aviation manufacturing that lies between light aircraft and large commercial jets, an area often viewed as more attainable for emerging aerospace nations.

There are, however, familiar caveats. Final assembly lines live and die by order books, and the success of any Indian E175 programme will depend on firm commitments from domestic operators and possibly government-backed fleet renewal or regional connectivity initiatives. India’s airline market is fiercely competitive and highly cost-sensitive, with turboprops continuing to dominate many regional routes. The E175’s economics will need to prove compelling in a market where margins are thin and infrastructure at smaller airports remains uneven.

That said, the broader industrial logic is hard to ignore. Even a modestly scaled FAL could anchor a wider supply chain of Indian small and medium enterprises, create high-skill employment and incrementally build design, manufacturing and certification experience within the country. For a nation that aspires to be a global aerospace manufacturing hub, regional jets may prove a more realistic first rung on the ladder than widebody airliners.

If the partnership progresses from MoU to metal being riveted on Indian soil, it would mark a noteworthy chapter in India’s aviation story, one where regional connectivity is not only flown by aircraft assembled abroad, but increasingly shaped by an industrial ecosystem at home.