Embraer Mahindra C-390 deal cooperation agreement on Friday, October 17, 2025, to advance the C-390 Millennium aircraft for the Indian Air Force’s Medium Transport Aircraft programme. The pact expands a 2024 memorandum of understanding and focuses on joint marketing, localisation, and industrialisation in India.
Signed at Embraer’s new national office in Aerocity, New Delhi, the deal aims to replace the IAF’s ageing AN-32 and IL-76 fleets with up to 80 versatile transport planes. Bosco da Costa Junior, President and CEO of Embraer Defense & Security, called it a step towards “Atmanirbhar Bharat” and stronger Brazil-India bonds. How will this Embraer Mahindra C-390 deal Indian Air Force reshape regional airlift capabilities?
Embraer Mahindra C-390 Deal Targets IAF’s MTA Needs
The Indian Air Force seeks 40 to 80 medium transport aircraft under its MTA programme, floated in 2022. This initiative addresses gaps in tactical airlift as older fleets near retirement. The Embraer Mahindra C-390 deal Indian Air Force emerges amid competition from Airbus A400M and Lockheed Martin C-130J. Embraer positions its C-390 Millennium as a cost-effective, multi-role solution with superior speed and payload.
The C-390 carries 26 tonnes, flies at 470 knots, and operates from unpaved runways. It supports cargo drops, troop transport, medical evacuations, search and rescue, firefighting, and air-to-air refuelling. Operators in Brazil, Portugal, Hungary, the Netherlands, Austria, South Korea, Czech Republic, Sweden, Slovakia, and Lithuania report over 99% mission completion rates. Embraer data shows the aircraft entered service in 2019 with the Brazilian Air Force.
Vinod Sahay, Member of the Group Executive Board at Mahindra Group, stated: “The C-390 Millennium is unmatched in capability, efficiency, and versatility. By deepening our collaboration with Embraer, together we will ensure that the C-390 Millennium for the IAF’s MTA campaign will not only contribute to India’s security and aspirations but also support the ‘Make in India’ philosophy and further self-reliance.”
Embraer Mahindra Strategic Agreement Builds on Prior Ties
The new agreement builds on a February 2024 MoU signed at the Brazilian Embassy in New Delhi. That initial pact focused on joint pursuit of the MTA programme. Today’s Embraer Mahindra strategic agreement MTA elevates scope to include manufacturing, assembly, supply chain integration, and maintenance, repair, and overhaul services.
Embraer and Mahindra plan to engage India’s aerospace ecosystem for local production. The goal: establish India as a regional hub for C-390 support, serving domestic and export needs. This aligns with India’s push for 50% local content in defence deals. Embraer inaugurated its fully owned subsidiary in New Delhi on the same day, enhancing on-ground presence.
Bosco da Costa Junior remarked: “India’s aerospace industry is dynamic and world-class, and together we aim to deliver the most advanced and reliable military transport solution to the Indian Air Force. This partnership is more than an aerospace deal – it reflects our commitment to ‘Atmanirbhar Bharat’ and the growing friendship between two major economies, Brazil and India.”
Embraer has deepened India ties since August 2023’s C-390 Millennium Day in New Delhi. That event drew local industry stakeholders. Existing Embraer platforms in India include Legacy 600 jets for VIP transport by the IAF and Border Security Force, plus Netra AEW&C based on ERJ145.
India Brazil Defence Collaboration Gains Momentum
The Embraer Mahindra C-390 deal Indian Air Force underscores broader India Brazil defence collaboration C-390. Bilateral ties span BRICS and G20 forums, with reciprocal interests. India pitched its Akash missile to Brazil recently, while Embraer eyes MTA success.
This pact fosters Global South cooperation. Embraer, with over 9,000 aircraft delivered worldwide, partners with Mahindra, a conglomerate in mobility, IT, and defence. Mahindra Defence Systems, a 100% subsidiary, specialises in armoured vehicles and electronics. The MTA programme, valued at USD 3-5 billion, demands technology transfer and offsets. Embraer commits to these, per its press release. Analysts note the deal raises C-390 selection odds, potentially yielding 30-60 initial orders.
Background: Evolution of the Embraer Mahindra Partnership
Roots trace to 2023 Aero India, where Embraer showcased the C-390. The 2024 MoU followed, targeting MTA evaluation. Embraer’s June 2025 subsidiary launch signalled long-term intent.
The IAF’s AN-32 fleet, inducted in the 1980s, faces obsolescence. IL-76 heavies, from the 1980s, need augmentation for tactical roles. The MTA requires versatility for India’s diverse terrain, from Himalayas to islands. Embraer highlights C-390’s edge: lower lifecycle costs than rivals, with full operational capability proven globally.
Impact on South Asia’s Defence Landscape
This Embraer Mahindra strategic agreement MTA matters for South Asia. Enhanced IAF airlift bolsters rapid response in border tensions and disaster relief. Local production creates jobs, skills, and export potential, reducing import reliance.
India Brazil defence collaboration C-390 strengthens non-Western supply chains, diversifying from US and European vendors. It supports regional stability amid China-Pakistan axis concerns. For neighbours like Pakistan and Bangladesh, it signals India’s self-reliance push, potentially influencing arms balances. Economic ripple: Thousands of jobs in aerospace hubs like Bengaluru and Hyderabad. Supply chain ties could export C-390 components regionally.
What’s Next for the Embraer Mahindra C-390 Initiative
Embraer and Mahindra will brief IAF officials soon. Trials and offset proposals follow RFI responses. Selection could occur by 2026, with deliveries starting 2028.
The partnership eyes MRO hubs for sustained support. Broader India-Brazil talks may cover joint ventures in drones or missiles. The Embraer Mahindra C-390 deal Indian Air Force sets a template for collaborative defence, blending Brazilian innovation with Indian manufacturing prowess.
Published in SouthAsianDesk, October 17th, 2025
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