India builds rockets and warplanes — so why not passenger jets?

India doesn’t yet build complete commercial airliners, a market dominated by Airbus and Boeing.

But through global partnerships, the subcontinent is rapidly moving into aircraft assembly and partial manufacturing.

That raises a billion-dollar question: is India laying the groundwork to build its own passenger jets?

With growing assembly lines and deepening global partnerships, the question is no longer if India can enter the market — but when.

Historically, India has focused on military aircraft via state-owned Hindustan Aeronautics Limited (HAL), but recent deals aim to establish domestic capabilities for civilian jets.

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For instance, India lacks a full indigenous commercial aircraft program like China's COMAC C919, but assembly lines for foreign models are emerging, potentially positioning India as a hub for regional jets. 

Experts note that full-scale manufacturing could take time, due to technological and cost challenges, though assembly could start sooner.

India's government is aggressively pursuing domestic aircraft production under initiatives like “Make in India” and “Atmanirbhar Bharat” to reduce import dependency and capitalise on booming aviation demand. 

Key efforts include:

In late 2025, the Adani Group signed an MoU with Brazil's Embraer to establish India's first final assembly line (FAL) for commercial fixed-wing aircraft.

This focuses on regional jets (70-146 seats) for short- to medium-haul routes, with operations potentially starting in 2026. The deal could involve models like the E-Jets, marking a shift toward commercial manufacturing.

In October 2025, HAL partnered with Russia's United Aircraft Corporation (UAC) to co-produce the SJ-100, a 100-seat twin-engine jet. Initial agreements focus on feasibility studies and production setup in India, targeting short-haul domestic routes. This is seen as a “game changer” by the government, though sanctions on Russia and cost uncertainties pose risks.

The government aims to develop a 90-seat regional transport aircraft by 2026, with design work ongoing. HAL plans to ramp up production capabilities, targetting 24 aircraft annually by 2025-2026. Additionally, revisions to standard operating procedures for aircraft orders prioritize domestic production.

These initiatives are supported by incentives like reduced GST on MRO services and FDI easing, aiming to build an aerospace ecosystem.

The push involves a mix of conglomerates, state entities, and global partnerships. 

Key players:

Other entities like Aeronautical Development Agency (ADA) focus on R&D, while global firms like Boeing and Airbus source parts from India, indirectly supporting local growth.

India's aviation market is booming, with domestic carriers placing record orders to meet surging passenger demand (projected to make India the third-largest market by 2025). IndiGo and Air India dominate, holding over 90% market share.

Here’s a summary of major orders as of early 2026:

Overall, Indian airlines ordered over 1,100 jets in 2023-2024 alone, driven by post-COVID recovery and rising middle-class travel. Capacity remains stable in 2026 due to retrofits and lease returns, but net growth accelerates post-2026.

Which Countries Are the Major Commercial Aircraft Manufacturers?

The global commercial aircraft industry is dominated by a few nations with established OEMs.

Here’s a list of major producers:

Airbus and Boeing control ~80% of the large jet market, while others dominate regional segments.

What would make India's domestic plane manufacturing fly? Based on analyses of India's aerospace sector, here are four key factors for success:

#1. Strong Government Policies and Incentives:

Initiatives like Make in India, PLI schemes, and FDI relaxation (up to 100% in some areas) are crucial for attracting investments and technology transfers. Prioritizing domestic orders via SOP revisions and reducing import reliance could accelerate growth.

#2. International Partnerships and Technology Access:

Collaborations with established players (e.g., Embraer, Russia) provide expertise, supply chains, and assembly know-how. This bridges gaps in design and manufacturing, enabling India to scale from components to full aircraft.

#3. Massive Domestic Demand and Market Growth:

With orders exceeding 1,500 aircraft and passenger traffic growing 10-12% annually, India offers a captive market. This scale justifies investments, especially for regional jets serving underserved routes.

#4. Skilled Workforce and Infrastructure Development:

India's engineering talent pools in hubs like Bangalore and Hyderabad, combined with training programs, provide cost-competitive labor. Expanding MRO facilities, airports, and supply chains will reduce costs and build ecosystems.