Adani Defence & Aerospace and Brazilian manufacturer Embraer have exchanged an enhanced Memorandum of Understanding proposing the establishment of a Final Assembly Line (FAL) for the E175 regional jet in India, as part of the country’s Regional Transport Aircraft (RTA) programme. The agreement was signed in New Delhi by Embraer President and CEO Francisco Gomes Neto and Adani Defence Director Jeet Adani, in the presence of Brazilian President Luiz Inacio Lula da Silva and India’s Minister of Commerce and Industry Piyush Goyal.
The upgraded agreement builds on the initial MoU signed in January 2026 and represents a further step toward developing a comprehensive regional aircraft industrial ecosystem in India. The partners emphasise that the project goes beyond aircraft assembly and includes the development of a local supply chain, maintenance, repair, and overhaul (MRO) services, pilot training, and the securing of aircraft orders necessary to sustain the proposed production line.
The E175, a regional jet with seating for up to 88 passengers, has established itself globally as a platform for efficient, high-frequency short- and medium-haul operations. India, one of the world’s fastest-growing aviation markets in terms of passenger traffic, is expected to require at least 500 aircraft in the 80- to 146-seat segment over the next 20 years. Within this segment, the E175 targets so-called “blue ocean” markets – Tier 2 and Tier 3 cities that remain underserved by larger narrowbody aircraft.
The initiative aligns with India’s UDAN regional connectivity scheme, which promotes the expansion of air services to smaller urban centres. According to Adani Defence representatives, developing an indigenous regional aviation ecosystem is critical to further expanding access to air travel, reducing regional disparities, and creating high-skilled employment. The strategic dimension of cooperation between India and Brazil was also highlighted as part of the broader industrial partnership.
Embraer already maintains a significant footprint in India, with nearly 50 aircraft of various types currently operating across commercial, business, and defence segments. Founded in 1969, the company has delivered more than 9,000 aircraft to date and is the world’s leading manufacturer of commercial jets with up to 150 seats.
For Adani Defence & Aerospace, part of the conglomerate Adani Enterprises Ltd, the project represents a further strengthening of India’s domestic aerospace industry. The company is developing capabilities in aircraft and unmanned systems manufacturing, avionics, weapons systems, as well as MRO and training, with a focus on national self-reliance and long-term capability development.
Whether India will ultimately host a Final Assembly Line for the E175 will depend primarily on securing firm aircraft orders and continued institutional support. Nevertheless, the signed agreement signals a clear ambition to anchor part of the global regional aviation value chain in India at a time when demand for smaller, fuel-efficient jets continues to grow.
