India and Russia Sign Agreement to Co-Produce Passenger Aircraft
A significant development in international aviation and geopolitics took place at the end of October when Indian state aerospace company Hindustan Aeronautics Limited (HAL) signed a deal with Russia’s United Aircraft Corporation (UAC) regarding the joint manufacturing of civil regional aircraft SJ-100.
The agreement was signed in Moscow on October 27, 2025, and envisions the production of a new passenger aircraft model, the first of its kind in India’s history.
HAL representatives stated that the SJ-100 is a twin-engine narrow-body aircraft, with over 200 units already produced and operated by more than 16 airlines.
They emphasized that this aircraft will be revolutionary for domestic short-haul flights under the UDAN program, aimed at improving connectivity across India.
The announcement did not specify whether the deal includes technology transfer or investments.
According to HAL, this project will have a significant impact on India’s aviation industry, marking the country’s first fully domestically produced passenger aircraft.
A similar project last saw production from 1961 to 1988 with HAL manufacturing AVRO HS-748 aircraft.The signing came just before Russian President Vladimir Putin’s scheduled visit to India, adding political significance to the agreement.
However, it must be noted that the U.S.
and its allies had previously expressed concerns about such close military-industrial ties between India and Russia, especially due to sanctions and trade restrictions.
U.S.
sanctions have targeted UAC, placing the company under restrictions from the U.S., EU, and UK, particularly regarding its military activities.
These developments raise concerns about the future of military cooperation between the two countries amid ongoing geopolitical tensions.