Adani, Embraer sign deal to make passenger jets in India: Site, production volume, jobs

India's Adani Group and Brazil's Embraer announced a breakthrough partnership on Tuesday that would establish India's first final assembly line for regional passenger jets.

Aviation industry tracker Aeromorning reported that a Memorandum of Understanding (MoU) signed on January 27, 2026 aims to develop India's first final assembly line for regional jets, which will include manufacturing, supply chain, maintenance repair and operations, and pilot training in the subcontinent.

The move could bolster New Delhi's long-term "Make in India" drive.

Potentially, it could also create 5,000 jobs in an industry that could help bolster the subcontinent's high-precision aerospace components manufacturing credentials, including avionics and composites.

Site selection

Sites reportedly being considered for the passenger jet factory include Gujarat or Uttar Pradesh, while equity and construction details remain pending, as per Bloomberg.

Talks on the details are set to start "soon", with government production-linked incentives (PLI) incentives likely.

The Indian government's PLI scheme offers financial incentives (4% to 18% of incremental sales) to domestic and foreign manufacturers to boost local production, reduce imports, and create jobs across 14 key sectors.

Launched in 2020, it targets electronics, pharma, automobiles, and solar.

Rollout, volume

Aviation industry media reported that the MoU covers regional transport aircraft up to 150 seats, leveraging Adani's infrastructure and Embraer's expertise to boost indigenisation under Make in India.

First jets could roll out in 5 years, targetting the booming regional demand (500+ aircraft needed by 2045).

Strategic impact

Embraer is reportedly eying 50 existing planes in-country as a base, while India's aviation minister hailed it as a self-reliance milestone.

Forbes quoted Adani executives, including Jeet Adani, as saying that specifics on costs and other details like equity and funding will be finalised alongside site selection in coming months.

Total "ecosystem investment" could scale higher, while developing an indigenous supply chain for commercial jets.

India's Aviation Minister Ram Mohan Naidu Kinjaparu praised it as a self-reliance milestone.

Job creation, challenges

Leaders like Embraer's Arjan Meijer and Adani's Ashish Rajvanshi highlighted job creation (5,000+ potential) and India-Brazil ties.

Challenges exist: India currently lacks an ecosystem for high-precision aerospace components, requiring heavy imports initially.

This could lead to delays in localisation targets under Make in India. Developing local suppliers could take years, with quality certification adding complexity.

If the deal comes to fruition, however, it could position the Adani-Embraer partnership against rivals like Boeing, Airbus and China's COMAC in regional aviation.