Embraer and the Mahindra Group are intensifying their efforts to secure the Indian Air Force's medium transport aircraft acquisition by positioning Nagpur as the future manufacturing centre for the C-390 Millennium military transport aircraft, PTI reported.

The move forms part of a broader strategy to establish a robust aerospace production ecosystem in India should the aircraft be selected for the upcoming procurement.

The Indian Air Force is pursuing the acquisition of around 80 medium transport aircraft to replace its ageing Soviet-origin AN-32 and IL-76 fleets. The requirement is expected to become one of India's largest military aviation procurements in the coming years, making it a highly competitive contest among major global aerospace manufacturers.

Under their joint proposal, Embraer and Mahindra have identified Nagpur as the preferred location for a potential Final Assembly Line for the C-390 Millennium. The companies are working alongside the Maharashtra government to prepare the necessary industrial infrastructure so that production activities can begin quickly if the aircraft receives government approval and a formal order.

The proposed facility would not simply assemble aircraft. It is envisioned as a comprehensive aerospace manufacturing centre incorporating aircraft assembly, systems integration, manufacturing engineering capabilities and local supply-chain development. The project is also intended to accelerate the growth of India's indigenous aerospace sector.

Mahindra and Embraer have already begun preparatory planning for an extensive industrial and support network around the C-390 platform. Their objective is to create long-term manufacturing and technology capabilities that align with the Government of India's Atmanirbhar Bharat and Make in India initiatives.

According to Mahindra, Nagpur presents a strong opportunity due to its growing aerospace infrastructure and the support provided by the Maharashtra government, including land allocation and assistance with project-related requirements. These preparations remain conditional upon the C-390 being selected by India and an Indian Air Force order being placed.

Embraer believes the project could become a major milestone in developing a sustainable aerospace ecosystem in India. The Brazilian manufacturer views India as a strategically important market and expects the country's future requirement to range between 60 and 80 aircraft.

The competition remains intense. Alongside the C-390 Millennium, the Airbus A400M and Lockheed Martin C-130J Super Hercules are among the principal contenders for the Indian Air Force requirement. The IAF already operates a fleet of 12 C-130J aircraft, making the American platform a well-established competitor in the contest.

If the Embraer-Mahindra proposal succeeds, Indian aerospace companies would gradually be integrated into the C-390 supply chain. The partnership intends to develop local manufacturing, aftermarket support, training, lifecycle management services and maintenance capabilities, significantly expanding indigenous participation in a major military aviation platform.

The collaboration builds on a memorandum of understanding signed in February 2024 and a strategic cooperation agreement concluded in October 2025. The arrangement covers industrialisation, local production, assembly operations, supply-chain development and maintenance, repair and overhaul activities within India.

Earlier in 2026, the two companies also announced plans to establish a dedicated C-390 Millennium maintenance, repair and overhaul capability in India, again subject to the aircraft securing the Indian Air Force contract. This would provide long-term support infrastructure for any future fleet operated by India.

The C-390 Millennium is a multi-role military transport aircraft capable of carrying up to 26 tons of payload. It can undertake troop transport, cargo movement, airdrop missions, medical evacuation operations, humanitarian assistance, search and rescue tasks and aerial firefighting missions. The aircraft is also designed to operate from temporary and unprepared airstrips, enhancing its operational flexibility.

By combining Embraer's experience in military aircraft design and production with Mahindra's manufacturing base and industrial network, the partnership aims to offer India not only a transport aircraft but also a substantial aerospace industrial capability that could support domestic production and export opportunities over the long term.

Agencies