Embraer Mahindra Alliance Boosts India Airlift Modernization Efforts

Embraer and Mahindra Forge Alliance for India’s Airlift Modernization

In a significant move aligning with India’s strategic goals, Brazilian aerospace leader Embraer and Indian industrial giant Mahindra Group have formalized a strategic alliance. This partnership aims to position the Embraer C-390 Millennium as the premier solution for the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) program. The collaboration, solidified through a Strategic Cooperation Agreement (SCA) on October 17, 2025, in New Delhi, represents a major step in bolstering India’s defense capabilities while championing the nation’s ‘Atmanirbhar Bharat’ (self-reliant India) initiative.

The IAF’s quest to modernize its transport fleet is a critical national security priority. The force currently relies on an aging fleet of Soviet-era An-32 and Il-76 aircraft, which are approaching the end of their operational lives. A previous attempt to co-develop a new MTA with Russia was shelved, creating an urgent need for a proven, off-the-shelf solution that also supports domestic industrial growth. The MTA tender, which seeks to procure between 40 and 80 aircraft, is a multi-billion dollar project that has attracted global attention. This high-stakes program is not just about acquiring new hardware; it’s about fostering a self-sustaining aerospace ecosystem within India.

The Embraer-Mahindra partnership is structured to meet these dual objectives head-on. By combining Embraer’s state-of-the-art aerospace technology with Mahindra’s extensive manufacturing and defense sector experience, the alliance presents a compelling bid. The agreement goes beyond a simple sales proposal, outlining a comprehensive plan for local manufacturing, assembly, and long-term maintenance, repair, and overhaul (MRO) support. This deep industrial cooperation is designed to resonate with the Indian government’s ‘Make in India’ policy, which mandates significant local participation in major defense acquisitions.

A Partnership Built on ‘Make in India’

The foundation of this collaboration was laid with a Memorandum of Understanding (MoU) in February 2024, which has now evolved into a more concrete Strategic Cooperation Agreement. The core of the agreement is a detailed industrialization plan that promises to integrate the C-390 Millennium into India’s defense manufacturing landscape. This involves more than just final assembly; the plan includes establishing a domestic supply chain and creating MRO facilities to ensure the fleet’s operational readiness and sustainability for decades to come.

This approach directly addresses the Indian government’s emphasis on technology transfer and building indigenous capabilities. The long-term vision extends to establishing India as a regional manufacturing and support hub for the C-390, potentially serving other nations in the future. This ambition aligns perfectly with the ‘Atmanirbhar Bharat’ policy, transforming a defense procurement into a strategic industrial project that could generate skilled jobs and foster innovation within the Indian aerospace sector.

The synergy between the two companies is clear. Embraer brings a globally recognized, modern, and proven aircraft platform. Mahindra, a key player in India’s private defense sector since 2008, provides the industrial muscle. Mahindra’s 25,000 sq. meter aerostructures facility near Bengaluru, which is AS9100D certified and a direct supplier to global OEMs like Airbus, underscores its capability to meet the rigorous standards of aerospace manufacturing. This combination of international technology and local industrial strength forms the backbone of their joint bid.

“By deepening our collaboration with Embraer, together we will ensure that the C-390 Millenium for the IAF’s MTA campaign will not only contribute to India’s security and aspirations but also supports the ‘Make in India’ philosophy and further self-reliance.”

, Vinod Sahay, Member of Group Executive Board, Mahindra Group

The C-390 Millennium: A Modern Contender

The Embraer C-390 Millennium stands out as a formidable contender in the MTA competition. It is a new-generation, multi-mission military aircraft designed for versatility and high performance. With a payload capacity of 26 tons, it meets a crucial IAF requirement: the ability to airlift the new 25-ton ‘Zorawar’ light tank, a capability that gives it a distinct edge. The aircraft boasts a maximum speed of 470 knots, allowing for rapid deployment of troops and cargo over long distances.

Its operational flexibility is one of its key strengths. The C-390 is capable of performing a wide array of missions, from standard cargo and troop transport to more specialized roles like medical evacuation, search and rescue, aerial firefighting, and air-to-air refueling (both as a tanker and a receiver). Furthermore, its ability to operate from unpaved or temporary runways is a critical advantage for military operations in diverse and challenging terrains. The existing global fleet has demonstrated an impressive mission completion rate of over 99%, attesting to its reliability and efficiency.

The C-390’s credibility is further enhanced by its growing international success. The aircraft has been selected by numerous air forces, including Brazil, Portugal, Hungary, the Netherlands, Austria, South Korea, the Czech Republic, and Sweden. Its adoption by several NATO and European countries underscores its modern design, interoperability with allied forces, and the robustness of its global supply chain. This widespread acceptance provides a level of assurance regarding the platform’s maturity and long-term viability.

“The most important advantage lies in the potential for manufacturing in India. Brazil is more likely to offer favourable technology transfer terms than either the US or Europe. It could directly support India’s ambition of developing its own civil airliner.”

, Air Marshal Matheswaran (Retd.)

Conclusion: A New Chapter in Indo-Brazilian Ties

The strategic alliance between Embraer and Mahindra Group is more than just a bid for a defense contract; it represents a confluence of strategic interests. For the Indian Air Force, it offers a technologically advanced solution to a critical modernization need. For India’s industrial ambitions, it presents a tangible opportunity to deepen the ‘Make in India’ initiative within the high-tech aerospace sector. The proposal to build the C-390 Millennium in India, supported by a local supply chain and MRO ecosystem, could be a transformative step for the country’s defense manufacturing capabilities.

This partnership also signals a strengthening of the broader relationship between India and Brazil. By collaborating on such a significant project, the two nations are laying the groundwork for deeper economic and strategic ties. As the IAF moves forward with its evaluation process, the Embraer-Mahindra bid stands as a powerful example of how global defense partnerships can be structured to deliver not only military capability but also long-term industrial and economic value, positioning India as a key player in the global aerospace landscape.

FAQ

Question: What is the Embraer-Mahindra partnership about?
Answer: Embraer Defense & Security and Mahindra Group have formed a strategic alliance to jointly offer the C-390 Millennium aircraft for the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) tender. The partnership focuses on local manufacturing and support in line with India‘s ‘Make in India’ policy.

Question: What is the C-390 Millennium?
Answer: The C-390 Millennium is a modern, multi-mission military transport aircraft. It has a payload capacity of 26 tons, a top speed of 470 knots, and can perform various missions, including cargo transport, medical evacuation, search and rescue, and air-to-air refueling. It is also capable of operating from unpaved runways.

Question: Why is this alliance significant for India?
Answer: The alliance is significant because it directly supports the Indian government’s ‘Atmanirbhar Bharat’ (self-reliant India) and ‘Make in India’ policies. It proposes establishing local manufacturing, a domestic supply chain, and MRO facilities in India, which would boost the domestic aerospace industry and could lead to favorable technology transfer.

Sources

Embraer