Adani Defence & Aerospace and Embraer have exchanged an enhanced Memorandum of Understanding (MoU) to establish a Final Assembly Line for the E175 regional jet in India.

The partnership follows an initial agreement from January 2026 and aims to develop an integrated ecosystem covering manufacturing, supply chain, aftermarket services and pilot training. The move comes as India is projected to require at least 500 aircraft in the 80- to 146-seat segment over the next 20 years.

The government-led UDAN initiative aims to make air travel affordable for the Indian population by providing initial funding to develop new regional airports and regional flight routes with capped airfares subsidised by tax levied on flights to popular routes.

Jeet Adani, Director, Adani Defence & Aerospace, 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. This partnership will also strengthen strategic relations between India and Brazil, bringing complementary capabilities together.”

Francisco Gomes Neto, President and CEO, Embraer, said India is “a key growth market for high‑frequency regional operations”.

“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,” he said.

IMAGE: Embraer

The companies are currently working to secure orders of the E175 to support the proposed assembly line.