The SJ‑100 and Ilyushin jet partnership marks a historic shift from military to civilian aircraft manufacturing, positioning India as a new hub for competitive production
Russia recently unveiled the Superjet SJ‑100 and the turboprop Il‑114‑300 at the Wings India 2026 airshow in Hyderabad. Hindustan Aeronautics Ltd (HAL), India’s state‑run defence‑aerospace company, had earlier signed an agreement with United Aircraft Corporation (UAC) to potentially manufacture the SJ‑100 jets in India.
The agreement was reaffirmed and clarified during the Wing India airshow. At the same event, UAC signed a deal to supply six Ilyushin Il‑114‑300 aircraft to Indian regional carrier Flamingo Aerospace.
Both developments signal a new chapter in India‑Russia cooperation, now extending into civilian aircraft manufacturing – a sector that was not even on the agenda a few years ago.
Wings India is a premier industrial biennial India and is considered Asia’s largest event on civil aviation. An array of 34 aircraft were showcased at the event, which was inaugurated by India’s civil aviation minister, Ram Mohan Naidu, who said that the government was keen on boosting the aviation manufacturing sector in the country.
Regular passenger planes, VIP planes, corporate helicopters and ambulances were among the planes on display. The models showcased were Boeing 787-9 Dreamliner, Boeing 737 Max, Dhruv ALH-NG helicopter, A321 Neo, A220, Aurus Business Jet, Hindustan 228 aircraft, Diamond Da40NG Tecnam P 2006 and Tecnam P2010.
Visitors thronged to see the two Russian regional airliners on static display. Both the Il-114-300 and the SJ-100 are equipped exclusively with Russian produced systems and components, including Russian-made TV7-117ST-01 and PD-8 engines manufactured by Russia’s United Engine Corporation. Both aircraft are presented with fully fitted interiors and passenger cabins.
Russian officials and diplomats, including Ambassador to India Denis Alipov, attended the airshow and witnessed the signing of the UAC‑India agreement, underscoring Russia’s keen interest in the growing Indian market.
India’s civil aircraft market
UAC’s and HAL’s presence at Wings India 2026 was beyond symbolism. The companies showcased their full civil aircraft portfolios, signalling readiness to compete with global American and European giants that currently dominate the civil aircraft market.
India today has the fastest-growing civil aviation sector, with the third-largest global air passenger market in 2025. Aviation contributes 5% of national GDP. It also greatly promotes tourism and cargo movement. India currently has 160 airports with scheduled flights, compared to 74 in 2014.
Over 161.3 million domestic air passengers travelled in India in 2025, up 6.12% from the year before. The current airliner fleet of around 800 aircraft will more than double in five years, and is projected to reach 2,250 by 2035. After reforms in the sector were introduced, India allowed 100% foreign direct investment in most sectors of civil aviation. The two largest Indian airlines, IndiGo and Air India, have announced plans to acquire over 500 aircraft each in the coming decade.
HAL has been making the HS-748 ‘Avro’ and Dornier D-228 aircraft in India under licensed production. Both have also been used for civil aviation. Also, National Aeronautics Laboratory has designed and test-flown the ‘Saras’ small transport aircraft. This work is still in slow progress.
The Tata Group companies are already building aero-structures for many helicopters and also C-130J transport aircraft for global customers. Meanwhile, a Tata consortium is building 40 Airbus C-295(formerly EADS CASA), twin-turboprop tactical military transport aircraft, as well as significant numbers of its sub-systems in India. The first Made-in-India C-295 aircraft will roll out of the new facility in September 2026. The indigenous content will be the highest ever in India, with 96% of the work that Airbus does in Spain gradually being done in India.
There are more than 125 domestic MSME suppliers spread across different states supporting the project which is expected to also held the South Asian nation in pushing the development of its own its commuter aircraft. Tata Group is also working with GE to manufacture CFM International LEAP engine components in India.
To collaborate on opportunities in aircraft manufacturing, supply chain, aftermarket services and pilot training, global aerospace leader
Adani Defence & Aerospace, a defense wing of Adani conglomerate, has recently signed a memorandum with global aerospace leader Embraer to develop an integrated regional transport aircraft ecosystem in India. The potential partnership will leverage Embraer’s deep engineering and aircraft manufacturing expertise alongside Adani’s aviation value-chain footprint.
SJ-100 Proposal
India’s HAL and Russia’s UAC had signed a MoU on October 27, 2025, in Moscow to manufacture SJ-100 regional passenger jets in India. This partnership aims to produce the 103-seater twin-engine aircraft for domestic, short-haul routes under India’s regional airport development initiative UDAN.
India has been wanting to have its own Indian regional jet airliner program for some time. New Delhi finally found a partner in Russia’s UAC to make the SJ-100 in India. HAL will initially have the right to produce the aircraft for domestic customers in India. HAL estimates that there is a market for over 200 regional jets in India over the next decade, with a further 350 required by the Indian Ocean Region countries. The move is seen as a pivotal step toward self-reliance in civil aviation, potentially injecting competition into a market long monopolized by Boeing and Airbus, and to some extent by Embraer.
UAC is currently under US, UK, and EU sanctions. India has said it does not subscribe to unilateral sanctions and has criticized the targeting of its ties with Moscow as unjustified and unfair, while accusing the West of double standards because the EU and US still buy billions of dollars’ worth of Russian goods.
In due course, the sanctions will be over. Regional jets have yet to make significant inroads in the Indian market, with carriers preferring larger narrow-body aircraft. India’s major regional jet operator is Star Air, which operates seven Embraer E175s and two ERJ-145s.
The SJ-100 currently has 71 firm orders, all from Russian carriers. UAC is meanwhile conducting certification tests of the SJ-100, with Russian Aviadvigatel PD-8 engines. Some airlines have been attracted by its low introductory price. The later variants will have winglets, and cabin density up to 108 seats.
Undoubtedly, the SJ-100 has had its teething supply-chain troubles. But that is true for many airliners including the Boeing 737 Max. Western sanctions have made things more complex. China remains dependent on Western aero-engines for its home-grown C919 and C929 airliners. India will have to negotiate with its partners to get appropriate aero-engines for its own aircraft, the international certification will need to be renegotiated as well. However, overall, SJ-100 could be win-win for India and Russia.
India is a rising economic power with soon-to-be the world's third largest economy. It also has the largest population with growing consumption. Russia, which is currently under heavy sanctions, and facing manpower shortages, remains a tried and tested friend. While Russia can bring in technology, India could set-up the manufacturing hub with local skilled-manpower, software, private sector strengths, bring in funding, and also global business best-practices. The civil aircraft production can be oriented for both Indian and Russian market as well as for rest of the world
Challenges and Opportunities for the sector
While 100% foreign direct investment has been cleared in most sectors of civil aviation, India has not yet leveraged large airliner orders. The country does have manufacturing and assembly skills, but lacks original design capabilities.
The narrow-body airliner market is huge. India is now insisting that foreign OEMs set up assembly lines in India and give component orders to local manufacturers.
India has a huge maintenance, repair, and operations (MRO) market for civil and military aircraft and engines. Local MRO services currently only handle 15-20% of demand, according to industry data, with 80-85% outsourced, highlighting significant potential for domestic growth.
A 2023 CRISIL report states that India’s MRO sector still faces obstacles such as difficulty obtaining credit, inadequate infrastructure, high taxes, licensing and certification issues, and high rental costs. But the Indian government has introduced several policies to support making the country a global MRO hub. These include reducing taxes on MRO services from 18% to 5%, land lease policies for longer durations to lower rental costs, and discontinuing the 13% government-charged royalty on revenue. These should reduce costs by 10–20%.
Setting up an MRO is highly capital intensive, with a long break-even time. It requires continuously reskilled manpower and repeat investments in tooling, and certification from safety regulators and global OEMs such as Airbus, Boeing, and many others.
The Indian government’s top think-tank, NITI Aayog, has recommended an incremental approach, by first setting up joint ventures in India with global players, and gradually ascending the work-value chain. Ultimately, India must aspire to be an international-class MRO hub like Singapore. A surge in local MRO facilities will be good for airline operations, safety, and costs. Russians would also have to set up MRO facilities for SJ-100 with Indian partners in India.
India also needs to set up an independent authority on the lines of the Aeronautical Development Agency to push the development of civil aviation aircraft. It should function under the prime minister’s office as it would involve inter-ministerial support. It may subsume the transport aircraft building facilities of state-run giants and also be tasked to work on building the medium-airlift military transport aircraft for the Indian Air Force. The agency must also drive building MRO facilities.
India must insist on foreign OEMs to set up engine manufacturing through a joint-venture route. Aircraft avionics is another area where India is way behind.
The National Civil Aviation Policy (NCAP) 2016, and its later versions, aim to create an integrated ecosystem for the growth of the Indian civil aviation sector, making flying more affordable and accessible, while also enhancing safety, security, and sustainability. It focuses on regional connectivity, ease of doing business, and promoting tourism and employment. The policy must be updated to incorporate India’s thrust for developing local manufacturing.
The West is moving out of China. Europe has a high cost of production. India is the next best destination for building and maintaining civil aircraft. India also has large land banks near airports, especially the newer greenfield ones. Government policies are becoming more attractive for promoting manufacture and shifting MRO to India. Finally, India has to invest much more in R&D. Developing your own designs and having your own patents is important. The Russia-India SJ-100 project could be great platform to make a beginning.