New Delhi, February 21, 2026 — Adani Defence & Aerospace and Embraer have negotiated an enhanced Memorandum of Understanding (MoU) for the establishment of a Final Assembly Line (FAL) for the regional jet Embraer E175 in India.
The project is linked to the country’s Regional Transport Aircraft (RTA) program and was formalized during a meeting between Francisco Gomes Neto and Jeet Adani, in the presence of the Brazilian president and India’s Minister of Commerce and Industry, Piyush Goyal.
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The new agreement expands upon the initial MoU signed in January 2026 and forms part of a broader strategic roadmap to develop a comprehensive regional aviation ecosystem in India. The initiative also strengthens strategic ties between Brazil and India, connecting two emerging markets with long-term industrial ambitions in the aerospace sector.
The industrial partnership envisions the creation of a complete ecosystem around the E175, including aircraft manufacturing, supply chain development, after-sales services, maintenance, repair and overhaul (MRO), and pilot training. The companies are also working to secure firm orders to economically sustain the future FAL on Indian soil.
Indian Market Could Require 500 Aircraft
According to industry projections, India is expected to require at least 500 aircraft in the 80- to 146-seat segment over the next 20 years, driven by rapid passenger traffic growth and expanding regional connectivity. It is one of the fastest-growing aviation markets in the world.
The E175, with capacity for up to 88 passengers, is considered well suited to serve high-frequency regional routes and markets underserved by larger aircraft. The model could open new routes to secondary cities, enhance connectivity, and accelerate the expansion of short-haul domestic air transport.
The consolidation of the E175 FAL could represent a turning point for Indian regional aviation, combining technology transfer, job creation, and strengthening of the local aerospace supply chain.
Source and images: Embraer. This content was created with the assistance of AI and reviewed by the editorial team.
