India's Adani Group has partnered with Brazil's Embraer to establish the country's first commercial fixed-wing aircraft final assembly line (FAL) for regional jets seating 70 to 146 passengers on short- to medium-haul routes . Adani Aerospace signed a memorandum of understanding with Embraer in Brazil last month, aligning with Prime Minister Narendra Modi's Make in India initiative, with a formal announcement expected at Wings India 2026 in Hyderabad from January 28-31 . Details on the facility's site, investment, and timeline remain undisclosed, but it positions India among nations with major commercial aircraft assembly capabilities .
The government plans fiscal incentives for airlines ordering from this FAL, such as subsidies on a reducing scale after every 50 orders, to build momentum and encourage Airbus and Boeing to follow suit beyond component sourcing . India, the world's fastest-growing aviation market, has over 1,800 aircraft on order from carriers like Air India, IndiGo, and Akasa Air, amid long delivery waits from global majors . Embraer already operates nearly 50 aircraft across 11 types in India for commercial, defense, and business use .
Embraer forecasts demand for 500 regional jets (80-146 seats) in India over the next 20 years, driven by UDAN scheme expansions, new tier-II/III airports, and secondary hubs in Delhi and Mumbai. Bengaluru-based Star Air, India's largest regional operator with an all-Embraer fleet holding 0.5% domestic traffic share, is negotiating up to 20 E2 jets in a $1 billion deal . This partnership boosts local jobs, technology transfer, and regional connectivity amid surging air travel .
