The enhanced Memorandum of Understanding (MoU) was exchanged between Francisco Gomes Neto, President and CEO of Embraer, and Jeet Adani, Director of Adani Defence & Aerospace. The signing took place in the presence of Brazilian President Luiz Inácio Lula da Silva and India’s Commerce and Industry Minister Piyush Goyal.
This development builds upon an earlier agreement signed in January 2026 and marks a significant step toward establishing a comprehensive aerospace manufacturing ecosystem in India. The collaboration also reflects deepening strategic ties between India and Brazil.
Boost to India’s Regional Aviation Push
India is one of the world’s fastest-growing aviation markets. According to industry projections, the country will require at least 500 aircraft in the 80-146 seat category over the next two decades. The proposed E175 assembly line could help meet this rising demand for regional connectivity.
The initiative complements the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which aims to enhance air connectivity in Tier-2 and Tier-3 cities.
Jeet Adani emphasized that regional aviation plays a critical role in economic expansion. He noted that building an indigenous ecosystem for regional aircraft manufacturing is essential as India expands its connectivity footprint.
Why the E175 Matters
The Embraer E175 is a proven regional jet with seating capacity of up to 88 passengers. Globally, it is widely used for high-frequency short-haul routes due to its fuel efficiency and operational reliability.
Industry experts believe the aircraft is well-suited for India’s emerging “blue ocean” markets routes connecting smaller cities that are not viable for larger narrow-body jets. The E175 can operate efficiently from shorter runways and smaller airports, making it ideal for regional networks.
Embraer’s CEO Francisco Gomes Neto described India as a key growth market in the regional jet segment and called the agreement a critical milestone in expanding aerospace collaboration.
Beyond Assembly: A Full Ecosystem
The proposed Final Assembly Line will not be limited to aircraft assembly alone. Both companies are exploring cooperation in supply chain development, maintenance, repair and overhaul (MRO), pilot training, and aftermarket services.
Adani Defence & Aerospace has been expanding its footprint in aviation manufacturing, MRO services, and training infrastructure. The group aims to align the project with the government’s Aatmanirbhar Bharat initiative, which promotes self-reliance in critical sectors.
Ashish Rajvanshi, President and CEO of Adani Defence & Aerospace, said the collaboration represents a bold step toward building high-skill employment opportunities and elevating India’s global aerospace standing.
Strengthening India-Brazil Relations
Beyond commercial benefits, the agreement holds diplomatic significance. Aerospace cooperation is seen as a strategic sector that can deepen industrial and technological collaboration between India and Brazil.
Embraer already has a growing presence in India, with nearly 50 aircraft operating across commercial, defence, and business aviation segments. The proposed assembly line could further cement its long-term commitment to the Indian market.
If finalized, the project could position India as a regional hub for E175 production and support services, potentially catering not only to domestic airlines but also to neighboring markets.
What Happens Next?
The companies are currently working to secure aircraft orders that would support the viability of the proposed Final Assembly Line. Industry observers note that firm commitments from Indian carriers will be crucial to advancing the project.
With passenger traffic continuing to surge and government-backed regional schemes gaining traction, the timing appears favorable. If implemented, the E175 assembly line could become a cornerstone of India’s next phase of aviation growth.
As India accelerates its journey toward becoming a global aerospace manufacturing hub, partnerships such as this may define the future of regional air connectivity in the country.