New Delhi, October 28, 2025 — In a significant step toward strengthening India’s civil aviation and strategic cooperation with Russia, Hindustan Aeronautics Limited (HAL) on Tuesday announced that it has signed an agreement with Russia’s United Aircraft Corporation (UAC) to jointly manufacture the SJ-100 civilian commuter aircraft in India. The move is aimed at meeting the country’s growing demand for regional passenger jets and marks the first major civilian aircraft production effort in India in decades.

The partnership comes at a critical juncture — just weeks before Russian President Vladimir Putin’s expected visit to India in early December for the annual bilateral summit. It also takes place amid Western pressure on New Delhi to scale down its purchases of Russian energy and defence equipment, following Moscow’s ongoing war in Ukraine.

A Strategic and Industrial Milestone

HAL described the agreement as a “landmark development” for India’s civil aviation manufacturing sector. Signed in Moscow on Monday, the memorandum of understanding (MoU) grants HAL the rights to produce SJ-100 aircraft for Indian customers. The ceremony was attended by HAL chairman and managing director D.K. Sunil and UAC director general Vadim Badekha.

Defence Minister Rajnath Singh, in a statement welcoming the move, called it “a historic milestone that will reshape India’s civil aviation landscape.” He said, “The SJ-100 will be the first complete passenger aircraft made in India since the Avro era. It will be a game changer for short-haul connectivity under the UDAN scheme and marks a major stride toward achieving ‘Aatmanirbharta’ (self-reliance) in civil aviation.”

The British-origin Avro HS 748 aircraft, built by HAL between 1961 and 1988, had served both civilian and military operators in India. Since its production ended, India has not manufactured a fully indigenous passenger jet. Singh emphasized that the new collaboration would not only revive that legacy but also catalyse job creation, strengthen private industry participation, and support regional air travel connectivity.

About the SJ-100 Aircraft

The SJ-100, formerly known as the Sukhoi Superjet 100, is a twin-engine, narrow-body regional jet designed for short and medium-haul routes. Capable of carrying up to 100 passengers, it first flew in 2008 and has since been inducted into the fleets of several international airlines.

So far, over 200 units of the SJ-100 have been built and are operated by more than 16 commercial carriers across different countries. The aircraft has been praised for its efficiency and versatility in regional aviation markets, and it is expected to play a key role in India’s expanding connectivity network under government initiatives like UDAN (Ude Desh ka Aam Nagrik).

Under the MoU, HAL will produce these jets for domestic use, catering to both government and private airline requirements. Industry experts said this move will allow India to replace ageing fleets on regional routes with locally manufactured aircraft, reducing dependence on foreign suppliers.

Reviving an Old Proposal and Deepening Ties

People familiar with the matter said Russia had first offered the SJ-100 to India nearly a decade ago to meet growing regional aviation needs. However, the proposal gained traction only recently, as India began pushing for indigenous manufacturing and technology transfer in aerospace.

HAL’s collaboration with UAC is built on a long-standing defence partnership. The two companies have previously worked together on several key projects, most notably the licensed production of the Su-30MKI fighter jets for the Indian Air Force (IAF). The Su-30MKI programme, widely considered one of India’s most successful defence manufacturing ventures, has served as a model for future collaborations.

UAC, in which the Russian government holds a majority stake, was formed in 2006 through the consolidation of leading Russian aviation firms, including Sukhoi, Ilyushin, and Tupolev. The company remains under US, EU, and UK sanctions due to its links with Russia’s defence industry. Despite this, India continues to engage with Russian defence and aerospace entities, maintaining that it does not recognise unilateral Western sanctions.

A senior official said the current pact represents not only a commercial agreement but also a strategic reaffirmation of India’s independent foreign policy stance. “India has been unfairly criticised for maintaining its ties with Russia. However, our cooperation is based on national interest and technological collaboration, not on political alignment,” the official noted.

India’s Growing Need for Regional Jets

India’s civil aviation sector has been growing rapidly, with regional connectivity emerging as a key priority. HAL estimates that the domestic market alone will require more than 200 regional jets over the next decade to serve short-haul routes. In addition, the company projects a demand for another 350 aircraft across the Indian Ocean region, particularly to connect international tourist destinations.

The UDAN scheme, launched in 2017, has already opened up dozens of small airports and regional routes, but the availability of suitable aircraft remains a bottleneck. Most regional airlines currently rely on imported models such as the ATR 72, Bombardier Q400, and Embraer E-Jet series. By manufacturing the SJ-100 domestically, HAL aims to provide a cost-effective and easily serviceable alternative tailored to Indian operating conditions.

“The manufacturing of SJ-100s will not only meet domestic demand but also open export opportunities for India in neighbouring countries and regions that require affordable commuter aircraft,” HAL said in its statement.

Economic and Industrial Impact

HAL’s collaboration with UAC is expected to have a wide-ranging impact on India’s industrial ecosystem. It is likely to involve extensive participation from private firms, suppliers, and maintenance providers. Rajnath Singh noted that the programme will generate thousands of direct and indirect jobs in the aviation sector and support the growth of ancillary industries.

“The project will strengthen the Make in India and Aatmanirbhar Bharat missions, encouraging technology transfer and boosting local capabilities,” Singh said.

Industry analysts believe the partnership could also give HAL the experience needed to venture deeper into civil aviation manufacturing, traditionally dominated by global players like Airbus, Boeing, and Embraer. “This project can act as a bridge for HAL, allowing it to transition from being primarily a defence manufacturer to a broader aerospace company with a civil aviation portfolio,” said an analyst at the Centre for Aviation Studies.

Broader Geopolitical Context

The timing of the agreement also underscores the enduring nature of India-Russia ties. Despite growing strategic engagement with the United States and other Western allies, India has maintained a balanced diplomatic approach, seeking to preserve its long-standing defence and industrial cooperation with Moscow.

Russia remains a key defence and energy partner for India, and the upcoming visit of President Vladimir Putin in December is expected to further consolidate this partnership. The new aircraft manufacturing deal is likely to feature prominently in bilateral discussions, showcasing the expanding scope of Indo-Russian collaboration beyond traditional defence projects.

At the same time, the deal highlights India’s ability to navigate complex geopolitical pressures. While the West continues to impose sanctions on Russian entities, New Delhi has chosen to pursue pragmatic cooperation in areas that align with its economic and technological goals.

Toward a Self-Reliant Civil Aviation Future

For India, the HAL-UAC agreement represents more than just an industrial collaboration—it is a symbolic leap toward self-reliance in civil aviation manufacturing. After decades of relying on imported passenger aircraft, India is now poised to build modern regional jets domestically, integrating indigenous components and local supply chains.

As Rajnath Singh put it, “The SJ-100 programme is not merely about producing planes. It is about producing confidence, capability, and credibility in India’s aviation industry.”

With the first phase of the project expected to commence soon, HAL’s venture into civil aircraft manufacturing could redefine the trajectory of India’s aviation sector—linking economic ambition with strategic independence and marking a new era in the country’s aerospace history.