Brazil and India are exploring a significant barter arrangement that could see the two nations exchange advanced military aircraft, marking a major step in South-South defence cooperation.
According to reports from Brazilian media citing defence ministry sources, Brazil is prepared to acquire India's indigenously-made Tejas Mk1A fighter jets and Prachand Light Combat Helicopters (LCH).
In return, India would procure a fleet of C-390 Millennium multi-role transport aircraft from the Brazilian aerospace manufacturer Embraer.
If finalized, this reciprocal exchange would be one of the largest defence agreements between the two BRICS partners, strengthening their domestic industrial bases.
The discussions are advancing within the framework of the Indian Air Force's (IAF) Medium Transport Aircraft (MTA) program, which seeks to procure 40 to 80 new aircraft to replace its ageing Antonov An-32 fleet.
Embraer's C-390 is a leading contender in this tender, competing against established platforms like Lockheed Martin's C-130J and Airbus's A-400M.
To support its bid, Embraer has already signed a partnership with India's Mahindra Group to align with the "Make in India" initiative.
This potential swap is founded on a "balanced procurement" principle, as previously highlighted by Brazil's Ambassador to India, Kenneth da Nóbrega. He had stated that if India purchases Brazilian platforms, Brazil will commit to purchasing an equivalent value of defence equipment from India.
The C-390 Millennium is a modern transport jet capable of carrying a 26-ton payload, conducting aerial refuelling, and operating from short, unpaved runways.
These capabilities are considered ideal for India's logistical needs in challenging environments, such as the high-altitude landing grounds in the Himalayas and remote island territories.
For Brazil, the deal offers a cost-effective pathway to modernise its own air force. The Tejas Mk1A is seen as a capable, affordable fighter to supplement its fleet of Saab Gripen jets, while the Prachand helicopter is well-suited for operations across Brazil's diverse terrain.
Strategically, the arrangement allows both nations to reduce their long-standing dependence on traditional Western and Russian military suppliers.
This move is particularly relevant for Brazil, which has faced significant trade pressures from the United States, including past threats of heavy tariffs on Brazilian goods that targeted key companies like Embraer.
A successful deal would provide a major boost to India's defence export ambitions. Hindustan Aeronautics Limited (HAL), the manufacturer of the Tejas and Prachand, has been actively promoting these platforms globally.
Several other nations, including Argentina, the Philippines, and Nigeria, have already expressed formal interest in the Indian-made aircraft.
The optimism surrounding the proposal is high, moving beyond earlier discussions that had included other Indian systems like the Akash and BrahMos missiles.
The current focus on aviation signals a deeper level of industrial integration.
This momentum was reinforced by high-level diplomatic meetings in New Delhi in mid-October 2025, where Indian Defence Minister Rajnath Singh met with Brazil's Defence Minister, José Múcio Monteiro Filho, to discuss expanding defence industrial collaboration.
