Embraer Defence & Security, a Brazilian aerospace company, and India’s Mahindra Group have signed a strategic collaboration agreement to jointly offer the C-390 Millennium aircraft for the Indian Air Force’s Medium Transport Aircraft (MTA) program.
This alliance is a crucial step toward improving India’s airlift capability while also strengthening industrial engagement between Brazil and India in the defense sector.
The deal builds on a previous memorandum of understanding signed in February 2024, which marked the start of preliminary project cooperation.
The recently inked agreement explicitly identifies areas of responsibility for marketing, industrialization, and supply chain development. Both businesses want to cooperate closely with India’s defense establishment to locate domestic partners for the C-390 aircraft’s production, assembly, and maintenance.
The partnership’s emphasis on developing a strong local manufacturing and maintenance infrastructure is a significant aspect. The collaboration intends to boost India’s aerospace ecosystem by bringing together commercial and public sector companies, harmonizing with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ (self-reliant India) programs. Mahindra and Embraer want to secure long-term value creation and technology absorption in the country by localizing assembly and sustainment operations.
Embraer created the C-390 Millennium, a new-generation multi-mission transport aircraft designed for efficiency, flexibility, and reduced maintenance requirements. It has a high cargo capacity, can reconfigure quickly, and can execute a variety of missions such as personnel and cargo transport, medical evacuation, and aerial refueling.
Its sophisticated fly-by-wire controls and advanced technology make it a good contender to replace the Indian Air Force’s outdated transport planes, such as the An-32.
This arrangement strengthens Mahindra’s rising position in the global aircraft supply chain. Airbus Helicopters awarded Mahindra Aerostructures a contract in August 2025 to build and construct the main fuselage of the H125 helicopter, adding to its previous award for the H130 that same year. These advances solidify Mahindra’s position as a reliable manufacturing partner for top global aerospace companies.
Mahindra Defence Systems, a prominent division of the Mahindra Group, has already established itself as a major supplier of armoured and tactical vehicles to India’s armed forces.
Its products include the Armado (Armoured Light Specialist Vehicle), mine-resistant vehicles, and vehicle-mounted mortar systems. Mahindra’s expansion into aerospace manufacturing underscores the company’s strategic goal of being a full defense and aerospace partner for India’s armed forces.
The new agreement between Mahindra and Embraer is projected to not only strengthen India’s transport aircraft capabilities, but also pave the path for long-term industrial cooperation, knowledge transfer, and indigenous production in India’s defence aviation industry.
