New Delhi: Adani Group has inked an initial pact with Brazilian aerospace major Embraer for setting up a final assembly line for its regional jets in India, according to sources. To tap the "huge opportunities" in India, Embraer had set up its office in the national capital in October 2025. At present, Embraer, whose E-Jets began operations in India in 2005, has nearly 50 aircraft in the country serving the Indian Air Force, government agencies, business jet operators and commercial airline Star Air.
Adani Group, which already has good presence in the fast-growing Indian aviation space, will be making its foray into building aircraft in India in association with Embraer. The sources said Adani Defence and Aerospace recently signed a Memorandum of Understanding (MoU) with Embraer for setting up the Final Assembly Line (FAL) in India.
Further details could not be ascertained. There were no comments from Adani Group and Embraer. The development also comes against the backdrop of the government pushing for 'Make In India' activities in the high-growth civil aviation space. Currently, there are no FALs for civilian aircraft in India. Last year, Civil Aviation Minister K Rammohan Naidu had said the government was in the process of setting up a special purpose vehicle for making regional transport aircraft and added that necessary policies are in place for India to manufacture planes and its components.
In November 2025, a senior Embraer official said in Bangkok that the aircraft maker is targeting the Indian market because it is an untapped market in Asia. "India is a market with lowest yields worldwide... if you don't have seat cost that is competitive, then it is very difficult to make it work. With E195-E2 (aircraft) and high density seat configuration, the seat cost is very competitive...," Raul Villaron, Senior Vice President - Head of Region for Asia Pacific at Embraer, had said.
Embraer's E195-E2 can have up to 146 seats. The company is looking to strengthen its presence in the country's commercial aviation, defence, business aviation, services and support, and urban air mobility segments. In 2024, Embraer Defense & Security and Mahindra Defence Systems inked an MoU to evaluate the opportunity to jointly pursue the Indian Air Force's Medium Transport Aircraft (MTA) programme with the C-390 Millennium.
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