In a development that signals a pivotal transformation for the global aviation sector, Hindustan Aeronautics Limited (HAL) has entered into a significant Memorandum of Understanding (MoU) with Russia’s United Aircraft Corporation (UAC).
The agreement, finalised in Moscow on October 27, 2025, authorises HAL to manufacture the Sukhoi Superjet 100—now redesignated as the SJ-100—within India.
This collaboration marks India’s re-entry into comprehensive civil aircraft manufacturing after a gap of nearly 40 years. Under the terms of the pact, HAL has secured exclusive rights to produce this 75- to 100-seat regional jet specifically for Indian carriers.
The initiative aims to strengthen the government’s UDAN regional connectivity scheme by providing a locally produced alternative to foreign imports.
A Strategic Push for Regional Connectivity
The momentum for indigenous aviation solutions accelerated further during the 23rd India-Russia Summit on December 5, 2025.Following the initial jet agreement, discussions expanded to include the joint production of the Ilyushin Il-114-300. This rugged, 68-seat turboprop aircraft is specifically designed for short-haul routes and is capable of operating from the shorter runways found in India's hinterlands.
These consecutive developments represent a strategic manoeuvre by New Delhi, intended to send a firm signal to the prevailing duopoly of Airbus and Boeing.
While these Western aerospace giants have benefited immensely from the surge in Indian air travel, they have remained hesitant to establish Final Assembly Lines (FAL) within the country.
With Indian carriers like IndiGo and Air India operating the world’s largest combined fleet of Airbus A320neo aircraft, the Ministry of Civil Aviation is leveraging domestic production to compel these manufacturers to commit to local assembly or risk losing market share to subsidised, home-grown alternatives.
The SJ-100: A "Russified" Alternative
The SJ-100 is an evolution of the original Sukhoi Superjet, re-engineered to overcome previous supply chain challenges caused by Western sanctions.The updated aircraft is powered by twin PD-8 turbofan engines, developed by Russia to replace the earlier Franco-Russian powerplants.
Offering a flight range of 3,500 km and modern fly-by-wire controls, the SJ-100 is positioned as a cost-effective competitor to the Airbus A220 and Embraer E190.
HAL is set to undertake the full assembly of these jets at its Nashik facility, which currently produces military trainers. By utilising existing infrastructure, HAL aims to scale production rapidly.
Furthermore, under the "Atmanirbhar Bharat" initiative, government subsidies could cover up to 40% of development costs.
This financial support is projected to reduce the unit price to approximately $25–30 million, making the aircraft a financially attractive option for low-cost airlines operating on the 500-plus underserved routes identified under the UDAN scheme.
Overcoming Historical Challenges
While the original Superjet faced criticism regarding its safety record and maintenance issues since 2011, the 2025 "Russified" variant addresses these concerns by replacing the complex international supply chain with reliable, domestically sourced components, including Aviadvigatel engines. Certification for the new variant is scheduled for December.Industry reports suggest that IndiGo, which holds a 60% share of the domestic market, is in early discussions for a pilot order of 50 units by mid-2026. Such a move would revitalise HAL’s civil aviation division and potentially generate 5,000 specialised jobs in Bengaluru and surrounding regions.
Complementing the jet is the Il-114-300, a modernised version of a Soviet-era utility aircraft. Equipped with Klimov TV7-117SM engines and digital glass cockpits, it is tailored for unpaved airstrips in difficult terrains like the Northeast and the Andaman and Nicobar Islands.
During the recent summit, Rostec CEO Sergey Chemezov proposed local production at HAL facilities if India commits to a fleet of over 100 units, offering full technology transfer.
With a price point of $17–18 million—roughly half that of an ATR-72—this aircraft could capture a significant portion of the regional market, currently served by ageing fleets.
Breaking the Western Monopoly
The introduction of these aircraft targets a market in urgent need of affordable regional connectivity.Although India’s passenger traffic grew by 15% in 2025 to reach 150 million, many Tier-2 and Tier-3 airports remain underutilised due to a lack of suitable aircraft.
Viability gap funding and subsidies could support the induction of 200 such airframes by 2030, forcing airlines to reconsider their reliance on exclusively Airbus or Boeing fleets.
Despite securing nearly $200 billion in orders from India over the coming decade, Airbus and Boeing have resisted requests to establish civil manufacturing lines in India, citing the need for even larger order volumes or warning of overcapacity risks similar to China’s C919 program.
However, India’s strategy to fast-track Russian platforms aims to circumvent potential sanctions (such as CAATSA) while maintaining pressure on Western manufacturers.
Strategic Autonomy and Future Diversification
This shift towards domestic production is driven by lessons learned from geopolitical volatility.When sanctions halted the supply of spare parts to Russia and Iran, fleets were grounded, highlighting the risks of relying solely on Western duopolies.
The SJ-100 program’s focus on import substitution ensures that Indian airlines can maintain operational sovereignty.
Simultaneously, India is diversifying its partnerships, with ongoing discussions involving Brazil’s Embraer.
Talks at Aero India 2025 indicated potential co-production of the E175 regional jet, blending Embraer’s aerodynamic expertise with Indian composite manufacturing capabilities.
This multi-pronged approach underscores India’s determination to secure its aviation independence and reduce the long-standing dominance of Western manufacturers in its skies.
