India’s Hindustan Aeronautics Ltd (HAL) and Russia’s United Aircraft Corporation (UAC) have taken their three-decade-long partnership to a new frontier, signing a landmark agreement to manufacture the advanced Sukhoi Superjet 100 (SJ-100) civil commuter aircraft under license in India. The deal, inked on the sidelines of Wings India—the continent’s largest civil aviation exhibition—marks a historic move, paving the way for India to produce complete passenger jets domestically for the first time in nearly four decades.
The signing ceremony witnessed HAL Chairman Dr. D.K. Sunil and UAC CEO Vadim Badekha formally executing the agreement, with Russian Deputy Industry and Trade Minister Gennady Abramchenkov and Ambassador Denis Alipov in attendance. The pact envisions a comprehensive collaboration between the two aerospace giants, with HAL supporting UAC in the certification and validation of the SJ-100 in India.
Under the terms of the agreement, HAL will receive a license to manufacture and sell the SJ-100, including all necessary components, spare parts, and maintenance equipment. UAC, in turn, will provide consulting services, design assistance, and specialist support to help HAL re-equip and optimize its production facilities for the aircraft’s assembly.
“The signing of this agreement marks an important step toward a general framework, which will outline a roadmap, timeframes, financial indicators, and a detailed division of responsibilities between the parties,” UAC said in an official statement.
The SJ-100, a twin-engine, narrow-body aircraft with seating for up to 100 passengers, is already in service with over 16 airlines worldwide, with more than 200 units produced to date. The aircraft is recognized for its operational efficiency and adaptability to regional commuter routes, making it a natural fit for India’s fast-expanding domestic aviation market.
Alongside the HAL-UAC agreement, Hyderabad-based startup Flamingo Aerospace signed a preliminary deal with UAC to acquire six Il-114-300 regional airliners, becoming the aircraft’s first export customer. Deliveries are expected to begin in 2028, signaling a growing interest from Indian private players in sourcing Russian civil aircraft.
Meanwhile, HAL is independently exploring a separate collaboration with Russia to co-produce the Su-57 ‘Felon’ fifth-generation fighter jet. Reports suggest that India is evaluating the costs and production volumes for two to three squadrons, intended to serve as an interim stealth fighter to fill a projected ten-year operational gap until the induction of the indigenous Advanced Medium Combat Aircraft (AMCA).
Analysts note that the successful execution of the SJ-100 project and Flamingo Aerospace’s Il-114-300 order could pave the way for a similar arrangement on the Su-57, further solidifying Indo-Russian defense and aerospace collaboration.
The 2026 agreements arrive in a landmark year: the 30th anniversary of the first HAL-Sukhoi deal. On November 30, 1996, India signed a contract with Sukhoi and Rosoboronexport for the supply of 50 Su-30MKI fighters, a US$1.462 billion agreement that laid the foundation for future Indo-Russian defense collaboration.
In 2000, HAL signed a license-production agreement for the Su-30MKI at its Nashik facility. Over the years, HAL has manufactured 222 Su-30MKIs, supplementing the initial 50 “fly-away” aircraft, resulting in a fleet of 272 jets, forming the backbone of the Indian Air Force’s (IAF) combat capabilities. More recently, in December 2024, HAL signed a US$1.3 billion contract with UAC to manufacture 12 additional Su-30MKIs domestically.
“The partnership with Sukhoi has been a cornerstone of India’s airpower modernization for three decades,” said defense analyst R.K. Menon. “Now, moving into civil aviation represents a significant broadening of the scope of collaboration.”
India’s venture into domestic civil aircraft manufacturing comes at a critical time. The country has become the world’s third-largest civil aviation market, trailing only the United States and China. According to the International Air Transport Association (IATA), annual passenger traffic reached 211 million in 2024 and is projected to hit 300 million by 2030.
Industry forecasts indicate that India will require between 1,000 and 1,500 new commercial aircraft over the next decade to accommodate fleet expansion and replacement amid surging demand. Boeing projects that airlines across India and South Asia will need nearly 3,300 new planes by 2044. Currently, the Indian aviation sector is almost entirely dependent on Boeing and Airbus, underscoring the strategic significance of HAL’s domestic production capabilities.
Major carriers have been aggressively expanding their fleets in recent years. Indigo and Air India alone have placed orders for over 1,100 aircraft valued at more than US$100 billion, among the largest in aviation history. By producing the SJ-100 domestically, India stands to save billions in foreign exchange and gain valuable technological expertise in passenger aircraft manufacturing.
HAL last manufactured a complete passenger aircraft in the 20th century, producing 89 AVRO HS748s between 1961 and 1988, including 72 for the Indian Air Force and 17 for Indian Airlines. The SJ-100 project thus represents a revival of India’s long-dormant civil aviation manufacturing capability, combining decades of defense-sector experience with new civilian aerospace ambitions.
The Su-57 project remains under technical evaluation, with HAL considering UAC’s proposal to produce two to three squadrons domestically. The IAF views the Su-57 as a stopgap measure to bridge the gap until the indigenous AMCA is operational. HAL’s existing Nashik facility, which assembles Su-30MKIs, along with its Koraput and Kasaragod divisions handling engines and avionics, already possesses nearly half of the infrastructure needed for Su-57 production.
UAC CEO Vadim Badekha emphasized the technical depth of ongoing discussions. Speaking to Russian media in Hyderabad, he stated, “We are in a deep technical stage of negotiations on this contract [for the Su-57]. Such agreements determine the trajectory of cooperation for decades to come and require extensive study.”
A Russian assessment team is expected to provide a detailed cost analysis for HAL, a critical step before final approval. Industry observers note that the success of the SJ-100 program could significantly strengthen the case for the Su-57 collaboration.
The dual thrust into civil and advanced fighter aviation highlights India’s evolving aerospace strategy: reducing dependence on foreign imports, fostering domestic manufacturing capabilities, and deepening strategic ties with Russia. By simultaneously securing civilian aircraft production and exploring fifth-generation fighter production, India is signaling its intent to become a comprehensive aerospace hub.
Defense and aviation experts view the HAL-UAC agreements as a blueprint for future Indo-Russian cooperation across both defense and commercial sectors. “The SJ-100 project is more than an economic or industrial initiative—it’s a strategic partnership that could redefine India’s role in global aerospace markets,” said analyst Meera Sethi.
The next steps will focus on operationalizing the SJ-100 program in India, with HAL preparing its production lines and workforce for full-scale assembly. For Flamingo Aerospace, the Il-114-300 deliveries will be a test case for Indian private-sector participation in regional aviation. Simultaneously, technical negotiations on the Su-57 will continue, potentially setting the stage for India’s entry into fifth-generation fighter production alongside its ongoing AMCA program.
With India poised to become a major global aviation hub, the HAL-UAC partnership demonstrates how decades-long defense collaborations can evolve into broader industrial and commercial cooperation. The convergence of military and civilian aerospace ambitions could have far-reaching implications, enabling India to secure technological independence while expanding its footprint in one of the world’s fastest-growing aviation markets.
As India celebrates the 30th anniversary of its first HAL-Sukhoi deal, the signing of the SJ-100 agreement may well be remembered as the beginning of a new era—one that bridges the nation’s historical aerospace expertise with the promise of a future dominated by domestic civil and defense aircraft production.
