Adani Defence & Aerospace and Embraer have confirmed plans to establish a Final Assembly Line (FAL) for the E175 regional jet at the Dholera Special Investment Region (SIR) in Gujarat, marking India’s first dedicated commercial aircraft assembly facility.

This project is expected to create thousands of skilled jobs and strengthen India’s aviation self-reliance under the UDAN and Regional Transport Aircraft (RTA) programs.

The partnership between Adani Defence & Aerospace and Brazilian aerospace giant Embraer represents a significant leap in India’s aerospace ambitions. The enhanced Memorandum of Understanding signed earlier in 2026 outlines the creation of a comprehensive ecosystem for regional aircraft, including manufacturing, supply chain development, aftermarket services, and pilot training.

The assembly line will be supported by firm orders, with Embraer targeting commitments for over 200 aircraft to formally launch production.

Dholera SIR was chosen due to its strategic advantages. The site offers proximity to the upcoming Dholera International Airport, excellent port connectivity, and advanced industrial infrastructure.

The region is being developed as one of India’s most advanced smart industrial cities, with plans for a sea port, Maintenance, Repair and Overhaul (MRO) facilities, and a pilot training school. These features make it an ideal location for a modern aerospace hub.

The E175 regional jet, part of Embraer’s successful E-Jet family, is a highly efficient 88-seat aircraft well-suited for India’s growing short-haul and underserved routes. It offers proven reliability, low operating costs, and strong performance in hot-and-high conditions common at many Indian airports.

Its deployment is expected to significantly enhance regional connectivity, aligning with the government’s UDAN scheme to expand air travel access across Tier 2 and Tier 3 cities.

The project will begin with final assembly and progressively increase indigenous content through Indian suppliers. This localisation effort represents India’s entry into modern commercial aircraft final assembly, a capability previously limited to licensed production of military platforms.

Thousands of jobs in engineering, avionics, composites, and advanced manufacturing are expected to be created, alongside the development of a robust domestic supply chain.

Adani Defence brings strong industrial execution capabilities and an established footprint in defence and aerospace, while Embraer contributes proven aircraft technology and global market expertise. 

Together, they aim to strengthen strategic relations between India and Brazil, combining complementary capabilities to support India’s RTA ambitions.

The initiative also opens opportunities for dual-use technologies, exports of assembled aircraft to neighbouring markets, and expanded MRO services.

Embraer’s leadership has emphasised India’s pivotal role in its global strategy. Meetings with major Indian airlines such as Air India and IndiGo, as well as TATA Group executives, are planned to secure commitments. The collaboration is expected to not only boost India’s aviation sector but also reinforce its position as a rising aerospace manufacturing hub.

This development complements India’s broader push for self-reliance in aviation and builds upon existing defence collaborations. It represents a milestone in India’s journey towards establishing a modern, indigenous commercial aircraft industry, with Dholera poised to become a cornerstone of this transformation.

Agencies