
India took a big step in boosting its aircraft manufacturing industry on January 29, 2026, when Hindustan Aeronautics Limited (HAL) signed a landmark agreement with Russia’s United Aircraft Corporation (UAC) to produce the Sukhoi SJ‑100 regional passenger jet in India.
The agreement that was unveiled at the Wings India 2026 aviation expo in Hyderabad can transform the Indian civil aviation industry and boost the domestic aerospace industry.
In the agreement, HAL will have a license to assemble, certify, maintain and sell the SJ-100 aircraft to the Indian market. UAC will also be involved in technical assistance, designing skills, and assisting in retrofitting the facilities of HAL to suit the production requirements. The industry executives believe that it would be among the first large-scale civil passenger aircraft manufacturing ventures in India in decades.
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The two-engine SJ-100 that is already in operation by airline companies around the globe is meant to cover short routes and carries approximately 100 passengers. The officials feel that it is capable of contributing significantly to improving connectivity in the region.
Entry into commercial aircraft manufacturing is also in line with the strategy of HAL to diversify its business beyond its robust defense business and to carve a larger market share in the emerging civil aviation market. The company will lease a consignment of SJ-100 jets to the Indian airlines in the next few months to enable the company to experience operation before the commencement of the local mass production.
Experts in the industry feel that the deal will enhance the India ambition of turning into a global manufacturing hub of aerospace with transfer of technology and creation of jobs likely to be experienced as production increases.
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