Adani Embraer deal: Could Embraer build its largest aircraft in production in India?

The country’s first commercial final assembly line (FAL) for fixed-wing aircraft is set to put India on the global aviation map with Adani Aerospace signing a memorandum of understanding with Brazil’s Embraer to manufacture its regional aircraft in India.

According to a report by TOI, the MoU was signed between the two players last month and an official announcement is expected later this month at the Wings India event in Hyderabad. Details related to the location and cost of the project will likely be announced at the event.

The Indian FAL could enable the Brazilian aviation major to accelerate production of the E195-E2 models, its largest aircraft in production. Embraer, a global aerospace leader, recently announced the delivery of 91 aircraft in the fourth quarter of 2025, a significant improvement from the 62 and 75 aircraft delivered in the third quarter of 2025 and the fourth quarter of 2024, respectively.

With the establishment of FAL in India, the Brazilian aeronautical major is seeking to increase its aircraft production. For the delivery of new aircraft for orders placed with Airbus and Boeing, there is a decades-long waiting list. Several new players looking to enter the aviation sector are turning to Embraer for short and medium-haul flights.

This will be the first commercial aircraft FAL in India. Embraer manufactures fixed-wing aircraft with up to 150 seats. In India, Star Air, a regional player, is the only airline to use Embraer Jets for its commercial services. The Kolhapur-based Sanjay Ghodawat Group-led airline plans to add second-generation Embraer Jets to its fleet as part of its expansion plans.

Keeping in mind the anticipated growth of aviation in the country, the government has been working to attract global aviation players to set up their FALs in the country under the Make in India initiative. According to the report, the government should offer certain incentives to customers who order from India’s first large commercial aircraft FAL.

Airbus is setting up 2 FALs in India with Tata for military transport aircraft (C295) and H125 helicopters but there is nothing for commercial aircraft while Indian national carriers have placed an order for more than 1,500 aircraft with Boeing and Airbus.