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HAL and Russia’s UAC to Manufacture SJ-100 Passenger Jets in India, Marking a New Era for Civil Aviation

Hindustan Aeronautics Limited (HAL) and Russia’s United Aircraft Corporation (UAC) have signed a joint venture agreement to manufacture the SJ-100 regional passenger aircraft in India. The agreement was formalized at the Wings India 2026 civil aviation exhibition in Hyderabad, marking one of the most significant steps taken by India in decades toward large-scale commercial aircraft manufacturing.


The partnership represents a strategic shift for HAL, which has traditionally focused on military platforms. By entering the civil aircraft segment in a major way, HAL is positioning itself to play a central role in India’s rapidly expanding aviation market. Senior officials from both countries attended the signing, underlining the strategic and industrial importance of the collaboration.


HAL and Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) Russia signs MoU | Indian Express
HAL and Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) Russia signs MoU | Indian Express

Licensed Production and Phased Manufacturing Roadmap

Under the agreement, HAL will receive licensed rights to manufacture, sell, and support the SJ-100 aircraft in India. The initial phase will focus on certification and validation of the aircraft for Indian regulatory requirements, including approval from the Directorate General of Civil Aviation (DGCA). During this phase, HAL will also facilitate the leasing of 10 to 20 flyaway SJ-100 aircraft from Russia to Indian operators to build operational familiarity and market confidence.


Over the next three years, the roadmap предусматривает a transition to semi-knocked-down (SKD) assembly in India, followed by deeper localization and full-scale domestic production. Industry reports indicate that localization will gradually expand to include avionics, electrical systems, interiors, and selected structural components, helping to develop a domestic civil aerospace supply chain.


SJ-100: A Regional Jet Designed for Sanction Resilience

The SJ-100 is an upgraded version of the Sukhoi Superjet family and has been redesigned to replace Western-origin systems with Russian-made components. The aircraft is powered by the PD-8 turbofan engine and incorporates domestically developed avionics and subsystems, making it largely independent of Western suppliers.


This redesign was accelerated in response to geopolitical developments and international sanctions, resulting in what Russian authorities describe as a fully import-substituted aircraft. The SJ-100 was showcased at Wings India 2026, including long-distance international flights to demonstrate its operational readiness and suitability for global markets.


Aligning with India’s Regional Connectivity and UDAN Vision

The project aligns closely with India’s UDAN (Ude Desh ka Aam Naagrik) scheme, which aims to improve air connectivity to tier-II and tier-III cities and make regional air travel more affordable. With India’s domestic aviation market expanding rapidly, industry estimates suggest that the country could require more than 200 regional jets in this category over the next decade.


HAL leadership has stated that civil aviation is expected to contribute up to 25 percent of the company’s total revenues within the next 10 years, compared to less than 5 percent currently. The SJ-100, along with platforms such as the Dhruv NG helicopter and the Hindustan-228 light transport aircraft, will anchor HAL’s long-term diversification strategy.


Strategic and Geopolitical Dimensions

Beyond commercial considerations, the HAL-UAC partnership reflects the continued depth of India-Russia aerospace cooperation, extending from defence into the civil aviation domain. The agreement comes at a time when multiple global aerospace manufacturers are exploring localization and assembly opportunities in India, reinforcing the country’s emergence as a potential hub for regional aircraft manufacturing, maintenance, and exports.


If executed successfully, this initiative could mark the first time in nearly four decades that a complete passenger aircraft is manufactured in India. The last such effort was HAL’s production of the Avro HS-748, which ran from 1961 to 1988.


Challenges in a Competitive Global Market

Despite its strategic promise, the program faces notable challenges. These include completing regulatory certification, establishing consistent serial production, building airline confidence, and competing with established regional aircraft manufacturers such as Embraer and ATR. Commercial aircraft manufacturing is a highly competitive and capital-intensive industry, and long-term success will depend on cost competitiveness, reliability, and sustained policy and market support.


Nevertheless, the combination of rising domestic demand, government backing, and localization incentives provides a strong foundation for the program’s potential success.


The MGMM Outlook

India’s decision to move into licensed manufacturing of the SJ-100 regional jet through HAL’s partnership with Russia’s UAC marks a significant shift in the country’s civil aviation ambitions. The agreement reflects a long-term strategy to extend India’s aerospace capabilities beyond defence into full-scale commercial aircraft production. By combining initial flyaway aircraft with a phased transition to local assembly and deeper localization, the program is positioned to help build a domestic civil aerospace ecosystem, including avionics, interiors, and selected structural components. This approach supports skill development, supply chain creation, and gradual reduction of reliance on imported commercial aircraft.


The project also aligns closely with India’s regional connectivity goals under UDAN and the growing demand for regional jets across tier-II and tier-III cities. With the SJ-100 designed to be largely independent of Western suppliers, the platform offers geopolitical and supply-chain resilience while supporting India’s push for industrial self-reliance. At the same time, success will depend on certification, airline confidence, cost competitiveness, and operational reliability in a market dominated by established global players. If these challenges are managed effectively, the initiative has the potential to strengthen India’s position as an emerging hub for regional aircraft manufacturing and long-term civil aviation growth.



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