India and Russia commit to new aircraft production partnership

The South Asian nation needs over 200 jets in the next decade to boost regional connectivity

India’s state-backed Hindustan Aeronautics Limited (HAL) has signed a memorandum of understanding with Russia’s PJSC United Aircraft Corporation (UAC) to produce civil commuter SJ-100 aircraft, the companies have announced.

The agreement, signed in Moscow on Tuesday, marks a significant step in India’s ongoing efforts to manufacture a passenger aircraft for the first time.

The Superjet SJ-100 is a twin-engine, narrow-body Russian regional passenger aircraft already in commercial service, with more than 200 units operating across 16 airlines worldwide. Under the new arrangement, HAL will have the rights to manufacture the aircraft in India for Indian customers.

“The model is expected to play a key role in boosting regional air connectivity under the Centre’s UDAN scheme,” a HAL statement said, citing an Indian government regional development initiative.

HAL noted that “mutual trust” between the two companies is what has enabled the latest Indo-Russian civil aviation partnership. The last such project was the production of AVRO HS-748, which started in 1961 and ended in 1988,” the Indian company said. 

According to HAL, manufacturing the SJ-100 in India will support Indian Prime Minister Narendra Modi’s ‘Make in India’ initiative to boost domestic production capabilities. 

In a landmark step for the Indian civil aviation sector, HAL and Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) have signed an MoU for the production of SJ-100 civil commuter aircraft in India.

The SJ-100 will be a game changer for short-haul connectivity… https://t.co/6ADTpJU5aJ

— Rajnath Singh (@rajnathsingh) October 28, 2025

India has a requirement of over 200 civil jets within the next decade to cater for regional demand, and an additional 350 aircraft to serve international destinations in the Indian Ocean region, HAL said. 

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PJSC UAC is Russian a manufacturer of civil and military aircraft, HAL is a state-run company that builds Russian fighter jets, helicopters, jet engines, avionics, and various spares for decades.

The memorandum was signed by Prabhat Ranjan from HAL and Oleg Bogomolov of PJSC-UAC in the presence of HAL CMD DK Sunil, and UAC DG Vadim Badekha.

India-Russia bilateral trade reached a record $66 billion in 2024, which included contributions from sectors such as aviation, railways, and others. Both nations have set a target of $100 billion by 2030.