India and Russia to build passenger jets in India, HAL Signs MoU for twin-engine SJ-100 production

HAL has signed an MoU with Russia’s United Aircraft Corporation, in what is being considered a landmark move for the aviation industry

By Shrey Banerjee

Oct 28, 2025 17:19 IST

Hindustan Aeronautics Limited (HAL) and Russia’s United Aircraft Corporation (UAC) have inked a memorandum of understanding to manufacture the twin-engine narrow-body aircraft SJ-100 in India. The landmark aviation partnership underscores growing ties between the two countries and advances India’s “Make in India” ambition for the aviation sector.

A “new chapter” for India’s airline industry

In a deal signed in Moscow, HAL secured rights to build the SJ-100 for domestic customers, while UAC brings the aircraft programme that already sees over 200 units in operation with more than 16 airlines globally. HAL called the collaboration “the first time a complete passenger aircraft will be produced in India,” according to a Business Standard report.

The SJ-100, a narrow-body design suited to short-haul routes, is expected to support India’s regional connectivity drive under the UDAN scheme, as well as create manufacturing jobs and boost the aviation supply chain in India.

Strategic benefits and future outlook

For HAL, the partnership marks a shift from primarily defence-aircraft manufacturing to civil aviation. As per Reuters, analysts are of the opinion that the deal strengthens India-Russia strategic ties and gives India access to a new aircraft category.

HAL estimates that over the next ten years India may require more than 200 regional jets for domestic use and around 350 more for destinations in the Indian Ocean region.

"SJ-100 will be the game changer for short-haul connectivity under the UDAN scheme in India. Under this arrangement, HAL will have the rights to manufacture SJ-100 aircraft for domestic customers," the Indian aerospace major said, according to a PTI report.

With this move, India is making inroads into aircraft manufacturing, aiming for self-reliance in a sector long dominated by global giants. HAL said the pact will also open greater opportunity for the private sector and generate “direct and indirect jobs”.

Tags: HAL, UAC, SJ-100, regional connectivity, Make in India

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