Dhaka: Embraer and Adani Defence & Aerospace have signed a Memorandum of Understanding (MoU) to establish a final assembly line (FAL) for the E175 regional jet in India.

The agreement was signed on Saturday, February 21, in New Delhi in the presence of Brazil’s President, Luiz Inácio Lula da Silva, and India’s Minister of Commerce & Industry, Piyush Goyal.

The MoU follows a January 2026 announcement confirming cooperation between the two sides in regional aircraft manufacturing. The latest development formally centers the partnership on local production of the E175 airliner in India.

The E175 can accommodate up to 88 passengers in a single-class configuration. The aircraft is seen as well-suited to India’s growing regional aviation market, particularly on short- to medium-haul routes linking smaller cities.

Embraer estimates India will require around 500 aircraft in the 80- to 146-seat segment over the next 20 years to support its regional connectivity ambitions.

Over the last decade, expanding domestic air connectivity has been a key priority for the Indian government to boost economic growth and bridge the urban-rural divide. Authorities have been promoting improved air links to Tier 2 and Tier 3 cities.

Under the UDAN program, the government has introduced incentives, including airport development and subsidies, to enhance accessibility to regional air services.

Embraer and the Adani Group are also working to establish supporting infrastructure, supply chains, aftermarket services, and pilot training capabilities to facilitate serial production of the E175 in India.