India inks pact with Russian firm to produce civil aircraft

In an apparent geopolitical message, India has inked a historic deal with Russia’s United Aircraft Corporation (UAC) to manufacture the SJ-100 passenger aircraft. Notably, the company is currently under US and EU sanctions. The plane will be produced in India for the domestic aviation market.

A memorandum of understanding (MoU) was on Tuesday signed in Moscow between the UAC and Hindustan Aeronautics Limited (HAL), a Defence Ministry-owned enterprise.

India’s decision to partner with a sanctioned entity introduces geopolitical complexities. New Delhi has traditionally maintained strong defence and aerospace ties with Moscow, including licensed production of Su-30MKI fighter jets and T-90 tanks. The move signals that India intends to continue its cooperation with Russia despite sanctions imposed by the US, UK and EU. India does not officially recognise unilateral sanctions imposed on any country.

US President Donald Trump has imposed a 50 per cent tariff on Indian goods entering the US, of which 25 per cent are punitive duties for purchasing Russian crude oil.

The HAL said the partnership with the UAC reflected “mutual trust” built over years of collaboration. The HAL has a long history of licensed production of Russian combat aircraft, including MiG-21, MiG-27 and Su-30MKI.

The HAL-UAC deal marks the revival of India’s dormant passenger aircraft manufacturing sector. It will be the first complete passenger plane built in India since 1988. Between 1961 and 1988, the HAL produced 89 AVRO HS-748 aircraft under licence -- 72 for the IAF and 17 for Indian Airlines.

Defence Minister Rajnath Singh posted on X: “The SJ-100 will be a game changer for short-haul connectivity under the UDAN scheme and marks a major stride towards achieving ‘Aatmanirbharta’ in civil aviation.”

The SJ-100 is a twin-engine, narrow-body regional jet. The HAL will hold manufacturing rights to produce the aircraft for domestic customers. Originally developed as the Sukhoi Superjet 100, the aircraft was later rebranded as the Yakovlev SJ-100 after Irkut Corporation was renamed Yakovlev Corporation in 2023.

The aircraft was initially powered by the PowerJet SaM146 turbofan engine -- a joint venture between France’s Safran Aircraft Engines and Russia’s NPO Saturn. India also partners with Safran, which makes helicopter engines in joint venture with the HAL.

Following the Russia–Ukraine conflict, Western sanctions crippled the supply chain. Russia has since indigenised production and replaced foreign components. In March this year, the SJ-100 successfully flew with the new Russian-made Aviadvigatel PD-8 engine, developed to replace the SaM146. Certification for the PD-8 is expected by the end of 2025, with production projected to reach 30 engines per year, according to Russian media reports.