India and Russia Explore Joint Production of Civil Passenger Aircraft as Aviation Partnership Expands

India and Russia are looking to take their long-standing aerospace relationship into a new phase centred on civil passenger aircraft manufacturing, as New Delhi seeks to build a domestic ecosystem for regional and commercial aircraft production.

Union Civil Aviation Minister Ram Mohan Naidu held discussions with Russian Minister of Industry and Trade Anton Alikhanov in New Delhi on September 10, 2026, with civil aircraft manufacturing and regional connectivity emerging as key areas for deeper industrial cooperation.

Naidu said India’s rapidly expanding regional aviation market creates an opportunity for the two countries to move beyond a conventional buyer-seller relationship towards joint manufacturing and broader industrial cooperation.

The discussions come as Russian state-owned United Aircraft Corporation (UAC) is making a major push into the Indian civil aviation market during the first INNOPROM India, being held at Bharat Mandapam in New Delhi from September 9 to 11.

Russia Offers Three Aircraft Families for India

UAC is showcasing three of Russia’s principal new-generation passenger aircraft in New Delhi — the Il-114-300 regional turboprop, SJ-100 regional jet and MC-21 medium-range airliner.

According to UAC, the three aircraft are being positioned for different layers of India’s aviation network.

The Il-114-300 is being proposed for regional services from smaller airports, including routes associated with India’s UDAN regional connectivity programme. It has been designed to operate from relatively small airfields and shorter runways.

The SJ-100, with seating for up to 103 passengers, is intended for short-range connections between metropolitan centres, regional cities and smaller urban markets.

The larger MC-21 is being positioned for busier medium-range routes where higher passenger capacity is required.

UAC says its offer to India extends beyond selling aircraft and includes local manufacturing, component production, technology partnerships and after-sales support.

HAL–UAC SJ-100 Project Moves Closer to Production Agreement

The most advanced India-Russia civil aircraft manufacturing project currently under discussion is the proposed production of the SJ-100 in India by Hindustan Aeronautics Limited.

HAL and UAC earlier signed a cooperation agreement laying the foundation for licensed production of the aircraft in India.

Under the arrangement, HAL is expected to receive a licence to manufacture and sell the SJ-100, including assemblies, parts and components required for maintenance and repair.

UAC, in turn, is expected to help HAL establish and modernise production facilities through engineering assistance, technical advice and deployment of specialists.

The project has now progressed substantially.

UAC chief executive Vadim Badekha said on September 9 that more than 80% of the licensing agreement has been finalised and that the company expects the document to be signed in the near future.

UAC also hopes to conclude a contract with the first Indian operator of the SJ-100 at Aero India 2027.

This makes the SJ-100 project much more advanced than a general expression of interest in aircraft cooperation.

From Aircraft Imports to Manufacturing in India

For India, the larger objective is to create the capability to manufacture civil aircraft domestically instead of remaining almost entirely dependent on imported passenger aircraft.

India has developed considerable expertise in military aviation, helicopters, aerospace components and aircraft structures, but large-scale indigenous civil passenger aircraft manufacturing remains limited.

A licensed SJ-100 production programme could therefore provide experience in final assembly, systems integration, component manufacture, certification support, maintenance and supply-chain development.

It could also create opportunities for Indian private-sector aerospace companies to enter the supply chain alongside HAL.

The discussions with Russia fit into a broader government push to encourage global aircraft manufacturers to establish manufacturing and supply-chain operations in India.

Regional Connectivity Creates the Market

Regional aviation is particularly important to the India-Russia discussions because the government has been expanding air services to smaller cities under the UDAN regional connectivity programme.

India’s growing network of regional airports creates demand for smaller aircraft that can economically operate routes where conventional narrow-body aircraft may be too large.

Russia believes the Il-114-300 and SJ-100 could address different portions of that market.

UAC said at INNOPROM India that the Il-114-300 could support flights from small regional airports while the SJ-100 could connect major cities with regional centres without requiring passengers to travel through the country’s largest aviation hubs.

The concept of India-Russia cooperation in regional aircraft production is also not entirely new.

As far back as the 2017 St Petersburg Declaration, India and Russia identified India’s Regional Connectivity Scheme as an opportunity for joint production and joint ventures in aviation manufacturing in India, including possible exports to third countries.

The current discussions therefore represent a revival and potentially a practical implementation of an ambition that has existed in the bilateral relationship for nearly a decade.

Il-114-300 Cooperation Also Advances

UAC has also indicated substantial progress in discussions involving the Il-114-300 turboprop.

Ahead of INNOPROM India, Badekha said UAC had made significant progress during the previous six months and had reached several agreements connected with the aircraft that were expected to be signed during the exhibition.

The Il-114-300 is particularly relevant to India’s regional aviation ambitions because it is designed for operation from smaller airports and relatively limited infrastructure.

Unlike the jet-powered SJ-100, the Il-114-300 is a turboprop, placing it in the same broad regional transport category as aircraft that currently form an important part of India’s short-haul aviation network.

If localisation eventually extends to the Il-114-300 as well, India could potentially develop manufacturing capability across more than one class of regional passenger aircraft.

MC-21 Could Open a Larger Opportunity

The MC-21 represents an even more ambitious possibility.

It is a larger medium-range passenger jet intended for heavily travelled routes and occupies a category much closer to the Airbus A320 and Boeing 737 families that dominate Indian airline fleets.

For the moment, UAC’s official statements regarding India concentrate more heavily on showcasing the MC-21 and demonstrating how it could fit into India’s airline network rather than confirming a local manufacturing agreement.

The SJ-100 therefore remains the clearest and most advanced India-Russia civil aircraft manufacturing programme.

INNOPROM Becomes Platform for Wider Industrial Cooperation

The aviation discussions are taking place against the background of the inaugural INNOPROM India 2026, jointly intended to deepen industrial and technological cooperation between India and Russia.

The exhibition brings together government representatives, manufacturers, investors and technology companies from the two countries and is focused on moving bilateral economic ties beyond traditional sectors.

For Russia, civil aviation offers an opportunity to expand its industrial presence in India beyond its historically strong role in defence aerospace.

For India, Russian willingness to discuss localisation rather than simply aircraft exports could support the government’s wider objective of developing an indigenous civil aerospace manufacturing base.

A Potential New Chapter in India-Russia Aerospace Cooperation

India and Russia already have decades of experience in complex aerospace manufacturing through programmes involving military aircraft and helicopters.

Civil aviation could now emerge as another pillar of that relationship.

The immediate focus is the SJ-100, where HAL and UAC are approaching completion of a detailed licensing agreement. At the same time, discussions surrounding the Il-114-300 and Russia’s wider passenger-aircraft portfolio indicate that both sides are exploring a much broader partnership.

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References

1. United Aircraft Corporation (UAC), Russia — September 9, 2026
   UAC Presents Comprehensive Solutions for Development of Air Transportation in India
   Official UAC release covering the SJ-100, Il-114-300 and MC-21 proposals for India, progress on the HAL–UAC SJ-100 licensing agreement, localisation and industrial cooperation.
2. Rostec / United Aircraft Corporation
   UAC and HAL Sign Agreement on Cooperation in Manufacturing of the SJ-100 in India
   Official announcement outlining planned licensed production of the SJ-100 by Hindustan Aeronautics Limited in India, including manufacturing, components, maintenance support and production cooperation.
3. Press Information Bureau, Government of India — September 2026
   Official information on INNOPROM India 2026, held at Bharat Mandapam, New Delhi, from September 9–11, 2026, as a platform for expanding India–Russia industrial and technological cooperation.
4. Prime Minister’s Office, Government of India — June 1, 2017
   St. Petersburg Declaration by the Russian Federation and the Republic of India: A Vision for the 21st Century
   The declaration identified India’s Regional Connectivity Scheme as an opportunity for India–Russia cooperation in aviation manufacturing, joint ventures and possible production for third-country markets.

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