India’s civil aviation growth story is entering a new phase. While narrow-body aircraft continue to dominate high-density metro routes, the next leg of expansion is increasingly being driven by shorter-haul connectivity linking Tier-2 and Tier-3 cities. This shift is reshaping policy priorities and industrial thinking, placing renewed emphasis on regional aviation and domestic manufacturing capability.

Amidst this backdrop, Adani Defence and Aerospace and Brazil-headquartered Embraer have announced a strategic partnership to establish a comprehensive Regional Transport Aircraft (RTA) ecosystem in India. According to the companies, the collaboration is aimed at developing end-to-end capabilities spanning aircraft assembly, systems integration, testing, certification, maintenance repair and overhaul, training and lifecycle support.

In statements announcing the partnership, Adani Defence and Aerospace has said that the collaboration goes beyond sourcing or licensed manufacturing and is designed to support India’s long-term ambition of transitioning from a large aviation market into an aviation manufacturing hub.Embraer, the Brazil-headquartered aerospace major and one of the world’s leading manufacturers of regional aircraft, brings decades of engineering and programme experience while Adani Defence and Aerospace is actively shaping an expanding aviation value chain footprint that includes airport infrastructure, aerospace manufacturing, maintenance, repair and overhaul (MRO) and pilot training.

The partnership is aligned with the Government of India’s Aatmanirbhar Bharat initiative and the Defence Acquisition Procedure (DAP) framework, which prioritise domestic manufacturing, indigenisation and lifecycle sustainment of high-value aerospace platforms. It also complements the UDAN (Ude Desh ka Aam Naagrik) regional connectivity scheme, which has been central to expanding air travel to smaller cities and underserved regions.

India’s civilian airport network has expanded rapidly under national connectivity initiatives such as UDAN and broader aviation infrastructure policy. From just 74 operational airports in 2014, the number has more than doubled to around 160–162 operational airports today. This expansion covers international, domestic and regional airports across states and Union Territories, placing India among the most dynamic aviation markets globally. Beyond existing infrastructure, the government has set longer-term targets to increase the total number of airports to 350–400 by 2047, aligning with projected growth in passenger demand and network capacity needs.

This expansion is reshaping the economics of domestic aviation as new routes operate on shorter sectors with lower passenger densities, making them unsuitable for single-aisle narrow-body aircraft and strengthening the case for regional aircraft optimised for feeder and point-to-point connectivity.

From Connectivity to Capability

India today is the world’s third-largest domestic aviation market after the United States and China. Domestic passenger traffic crossed 150 million annually before the COVID-19 pandemic and is projected to double by the early 2030s. Yet air travel penetration remains low, with fewer than 0.12 air trips per capita, compared with more than 2.5 in the United States, highlighting the scale of untapped demand.

This growth is increasingly concentrated outside major metros. More than 450 operational airports and airstrips are planned or under development as part of India’s regional connectivity push, many of which are not economically viable for single-aisle narrow-body aircraft. Regional aircraft, typically seating 70 to 120 passengers, are better suited for shorter runways, lower passenger densities and feeder routes that connect smaller cities to major hubs.

Industry forecasts underline this divergence in demand. While India is expected to require between 1,700 and 1,900 narrow-body aircraft over the next two decades, projections suggest a need for 300 to 400 regional aircraft over the same period. This demand is being driven by Tier 2 and Tier 3 city connectivity, shorter-haul routes and the continued expansion of airport infrastructure, according to assessments by global aircraft manufacturers, aviation consultancies and the Ministry of Civil Aviation (MoCA).

According to Adani Defence and Aerospace, the proposed RTA ecosystem is expected to generate thousands of high-skill jobs across engineering, avionics, structures, manufacturing and systems integration. It is also expected to enable the participation of micro, small and medium enterprises, as well as Tier-1 and Tier-2 suppliers, in global aerospace value chains. India’s aerospace and defence sector currently employs more than 250,000 people, with strong growth anticipated as domestic programmes scale up.