By A Correspondent

New Delhi: Brazilian aerospace major Embraer on February 21, 2026, announced the signing of an agreement with Indian giant Adani’s defence and aerospace arm to set up a final assembly line for its E175 regional jet to meet the growing demand of the Indian market for domestic travel.

The two companies said in a statement that they have exchanged an enhanced Memorandum of Understanding (MoU) regarding the FAL for the E175 for India’s Regional Transport Aircraft (RTA) programme.

The announcement comes less than a month after the two companies had announced a partnership to meet the Indian Air Force (IAF) Medium Transport Aircraft requirements and to jointly bid for a Ministry of Defence (MoD) tender in this regard.

Embraer president and chief executive officer Francisco Gomes Neto and Adani Defence and Aerospace director Jeet Adani exchanged the MoU in the presence of Brazilian President Luiz Inacio Lula da Silva and Indian Commerce and Industry Minister Piyush Goyal in New Delhi.

“This advancement from the initial MoU signed in January 2026 represents a significant step forward and forms part of a broader roadmap to develop an integrated RTA ecosystem in India. The MoU also represents the strengthening of strategic relations between India and Brazil,” the two companies’ media statement said.

“The industrial partnership will aim to establish an ecosystem for the E175. Both companies are already working together to progress all aspects of the MoU, including opportunities in aircraft manufacturing, supply chain, aftermarket services, and pilot training, and securing orders to support the proposed FAL,” it said.

“Regional aviation is the backbone of economic expansion. With initiatives like UDAN transforming air connectivity across Tier 2 and Tier 3 cities, the need for an indigenous regional aviation ecosystem has become critical,” Jeet Adani said in his comments.

“This partnership will also strengthen strategic relations between India and Brazil, bringing complementary capabilities together.,” Adani said.

“We are shaping India’s regional transport aircraft ecosystem, a bold stride toward Aatmanirbhar aviation that bridges urban-rural divides, generates high-skill employment, and elevates India’s position in the global aerospace industry,” Adani Defence and Aerospace president and chief executive officer Ashish Rajvanshi said.

“The E175 has a global track record of enabling efficient, high-frequency regional operations and India is a key growth market in that segment,” Francisco Gomes Neto said in his remarks.

“This signing represents a critical milestone for our partnership, as we continue to work together on all aspects of the proposed aerospace ecosystem, including securing orders for a Final Assembly Line in India.”

As one of the world’s fastest-growing aviation markets in terms of passenger traffic, India is expected to require at least 500 aircraft in the 80-to-146 seat segment over the next 20 years.

“This reflects a strong demand for efficient regional and short-haul connectivity driven by smaller, efficient jets,” the two companies said.

The E175, a regional jet with seating for up to 88 passengers, is “uniquely suited” to unlock India’s ‘blue ocean’ opportunities in uncontested market spaces concentrated in Tier-2 and Tier-3 cities, they said.

“These markets remain underserved by larger aircraft, and the E175 can enable new routes, improved connectivity, reliable operations, and accelerated expansion of regional air travel,” their statement noted.

As the Indian government accelerates efforts to bring air travel to more people, the E175 offers “a proven and efficient solution” for the RTA, which aligns strongly with UDAN, which is transforming air connectivity across Tier 2 and Tier 3 cities of India.

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