Adani, Embraer to Build Jets in Gujarat’s Dholera

Adani Group and Brazil’s Embraer have reportedly chosen Dholera, Gujarat, as the site for a new aircraft assembly line, marking a major step in India’s push for indigenous aviation manufacturing under the Aatmanirbhar Bharat and UDAN schemes. The facility will assemble Embraer’s regional jets, but its rollout depends on securing airline commitments for aircraft orders.

It was in January this year, when Adani Group and Brazil’s Embraer had signed the deal to establish a final assembly line for regional aircraft in India. This marked Adani’s entry into aircraft manufacturing and boosting India’s ambition to become a global aviation hub.

Key Highlights

• Location: Dholera Special Investment Region (DSIR), near Ahmedabad, Gujarat — a planned greenfield smart industrial city.
• Partnership: Adani Defence & Aerospace + Embraer (MoU signed January 2026).
• Objective: Establish a Final Assembly Line (FAL) for Embraer’s regional jets in India.
• Strategic Fit: Supports India’s Regional Transport Aircraft (RTA) programme, Aatmanirbhar Bharat, and the UDAN regional connectivity scheme.
• Market Context: India has over 1 billion people but relatively low air travel penetration, making regional connectivity a huge growth opportunity.

Why Dholera?

• Industrial Policy: Gujarat’s new “ultra mega” industry category incentivises projects above ₹10,000 crore.
• Smart City Infrastructure: DSIR offers modern logistics, connectivity, and industrial support.
• Strategic Location: Close to Ahmedabad, with access to skilled workforce and transport hubs.

Embraer’s Vision for India

• Civil Aviation: Expanding presence in commercial jets, especially E-Jets for regional routes.
• Defence & Security: Partnerships with Indian firms (including Mahindra for C-390 Millennium transport aircraft).
• Urban Air Mobility: Exploring future opportunities in air taxis and advanced mobility solutions.
• CEO Arjan Meijer’s View: India is “the biggest market around the world” with “amazing potential,” but success requires airline commitments and a holistic approach.

Challenges & Risks

• Airline Orders: Without confirmed commitments, the assembly line may face delays.
• Revenue Complexity: India’s aviation market is fragmented, with pricing pressures and thin margins.
• Indigenisation: The partnership promises phased localisation, but supply chain integration will take time.

Strategic Impact

Factor	Details
Regional Connectivity	Supports UDAN scheme, linking smaller cities
Industrial Growth	Boosts Gujarat’s DSIR smart city development
Aerospace Capability	Advances India’s RTA programme
Global Positioning	Embraer challenges Airbus & Boeing dominance in regional jets