New Delhi, October 17, 2025—In a resounding endorsement of Atmanirbhar Bharat, Embraer Defense & Security and the Mahindra Group have elevated their partnership to a Strategic Cooperation Agreement (SCA), targeting the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) program. Signed alongside the inauguration of Embraer’s national office in Aerocity, New Delhi, this pact expands on their February 2024 MoU, emphasizing joint marketing, industrialization, and positioning India as a regional hub for the C-390 Millennium.

This development serves as a natural progression from the C-295 tactical airlift deliveries, bridging short-haul capabilities with the MTA’s strategic needs, while complementing carrier-based ops like the Rafale M on INS Vikrant.

C-390 Millennium: Specs That Redefine Versatility

The C-390 Millennium is a tactical-military transport powerhouse, designed for the 21st-century battlefield. Key specifications include:

• Payload Capacity: Up to 26 tons (or 80 troops/66 paratroopers)
• Range: 2,800 km with full load; 6,500 km ferry range
• Speed: 870 km/h (Mach 0.8) cruise
• Short-Field Ops: Takes off/lands on 1,500m unpaved runways
• Aerial Refueling: Probe-and-drogue compatible for tanker or receiver roles
• Multi-Role Missions: Cargo/troop transport, airdrop, medevac, SAR, firefighting, and humanitarian aid

With fly-by-wire controls, advanced avionics, and a low life-cycle cost (30% below competitors), the C-390 has already proven itself in fleets across Brazil, Portugal, Hungary, the Netherlands, and South Korea.

Embraer CEO Bosco da Costa Junior emphasized, “The C-390 brings cutting-edge technology to India, aligning with Make in India while enhancing IAF’s operational flexibility.”

Embraer and Mahindra leaders ink the SCA amid Brazilian and Indian flags, October 17, 2025 (Mahindra Photo)

Hyderabad as the Manufacturing Epicenter

The SCA commits to **local manufacturing and assembly** in India, with Hyderabad’s Aerospace Park earmarked as the primary site. Mahindra’s existing facilities—home to UAVs and armored vehicles—will host:

• Final Assembly Lines (FAL): 70% indigenous content, including wings and fuselage sections
• Supply Chain Integration: Partnerships with Tata, HAL, and Adani for composites and avionics
• MRO Hub: Regional support for South Asia, extending C-390’s service life to 40+ years

This mirrors the Tata-Airbus C-295 model, where Gujarat’s Vadodara plant achieved 75% local value addition. By 2030, the Hyderabad hub could export C-390 variants to ASEAN and Middle East markets, generating **$2–3 billion in offsets**.

Job Creation: 5,000+ High-Skill Roles

The partnership is a workforce multiplier. Initial projections include:

• Direct Jobs: 5,000 in assembly, testing, and R&D by 2028
• Indirect Jobs: 15,000 in supply chain (e.g., precision machining in Bengaluru)
• Skill Development: Training programs with IIT Hyderabad for aerodynamics and digital twins

Mahindra Chairman Anand Mahindra stated, “This SCA isn’t just about aircraft—it’s about building India’s aerospace talent pool and fostering innovation ecosystems.” It ties into broader Atmanirbhar Bharat reforms, where private sector contributions have surged 300% since 2020.

Artist’s impression: C-390 final assembly in Hyderabad, integrating Indian avionics (Embraer Illustration)

MTA Program: C-390 vs. A400M Showdown

The IAF’s MTA tender—valued at **₹80,000–1,20,000 crore** for 40–80 aircraft—seeks to replace aging An-32s by 2032. The C-390 edges out Airbus’s A400M in:

• Cost Efficiency: $85M per unit vs. A400M’s $150M
• Indigenization: 70% local vs. A400M’s 50% (via Tata)
• Operational Fit: Better for Himalayan short runways; dual refueling probes for IAF tankers

Lockheed’s C-130J Super Hercules remains a wildcard, but the C-390’s NATO interoperability and proven airdrop accuracy (e.g., in Brazil’s Amazon ops) give it momentum. Trials are slated for Q2 2026 at Hindon AFS.

Strategic Bridge to Full Indigenization

Beyond MTA, the pact eyes hybrid integrations:

• Aerial Refueling Pods: For IAF’s Phalcon AEW&C escorts
• Special Missions: Maritime patrol variants with DRDO sensors
• Export Synergies: Co-bid for Philippines’ C-130 replacements

This builds on the Light Helicopter RfI, creating a layered air mobility ecosystem from helos to heavies.

Global South Synergy: Brazil-India Ties

The SCA strengthens BRICS defense corridors, with Embraer’s New Delhi office facilitating tech transfers. It also aligns with QUAD logistics, enabling seamless ops from Andamans to Malabar Coast.

Roadmap to MTA Victory

Key milestones:

• Q4 2025: Joint pitch to DAC; offset proposals finalized
• Q2 2026: Demo flights and user trials with IAF
• 2027: First metal cut in Hyderabad; deliveries start 2028

Conclusion

The Embraer-Mahindra C-390 pact is a masterstroke for India’s airlift renaissance. From Hyderabad’s assembly lines to IAF squadrons dominating the Himalayas, this collaboration transforms the MTA from procurement to indigenization triumph. As the C-390 soars into contention against the A400M, it promises not just aircraft—but a self-reliant aerospace powerhouse.

Stay locked in: We’ll cover the first C-390 demo over Tezpur AFS, expected May 2026.