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The Adani Group and Brazilian aerospace company Embraer are collaborating to establish India's first commercial aircraft final assembly line (FAL). The facility will assemble Embraer's regional jets domestically, designed for short- to medium-haul routes and seating 70-146 passengers. This move strengthens India's Make in India initiative in aviation and is expected to encourage global aerospace companies to consider local assembly. With India projected to need around 500 regional jets over the next 20 years, this partnership could play a significant role in meeting rising domestic demand.
The Adani Group has partnered with Embraer to set up India's first commercial aircraft final assembly line, which will enable domestic assembly of Embraer's regional jets. These jets, used on short- to medium-haul routes, accommodate between 70 and 146 passengers. Last month, Adani Aerospace signed a memorandum of understanding with Embraer in Brazil to advance the project, representing a major push for the government's Make in India initiative in aviation. The companies have not disclosed additional details yet. Advertisement
The location, investment size, and operational start date of the assembly line are still being finalised. Officials indicate that a formal announcement will likely be made during the Hyderabad air show later this month. The government is exploring fiscal incentives for airlines and operators placing orders through this FAL, which could be structured to reduce gradually as order volumes increase, such as after every 50 orders.
India, being one of the fastest-growing aviation markets with over 1,800 planes on order from carriers like Air India group, IndiGo, and Akasa, is seen as a promising destination for final assembly lines. The government hopes that the success of Embraer's assembly line will encourage larger manufacturers, such as Airbus and Boeing, to consider similar local production instead of only sourcing parts from India.
Embraer has an existing footprint in India, with nearly 50 aircraft of 11 different types operating across commercial, defence, and business aviation. Star Air currently uses Embraer jets and may place additional orders. With Airbus and Boeing single-aisle aircraft not available for fresh deliveries until the middle of the next decade, some Indian aviation startups are planning to launch services with Embraer aircraft.
Raul Villaron, Embraer's senior vice president, has stated that there is a substantial market for regional jets seating 80-146 passengers, and India may require about 500 such aircraft over the next 20 years. Gautam Sahni, MD of Subha Aviation, has sought government approval for an operator's permit and is in talks with Embraer. He highlighted that the opening of new airports in tier II and III cities, along with secondary airports in Delhi and Mumbai, will significantly improve regional connectivity under initiatives like the subsidised UDAN scheme.
Embraer also maintains a fully owned Indian subsidiary to explore opportunities across commercial aviation, defence, business aviation, services, and support. This assembly line could attract further global aerospace investment and strengthen India's position in the regional jet manufacturing ecosystem.
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