Dholera continues to strengthen its position as one of India’s most closely watched industrial destinations. In the latest development, Adani Defence & Aerospace and Brazilian aerospace major Embraer have identified the Dholera Special Investment Region (DSIR) in Gujarat as the proposed site for a final assembly line (FAL) for regional transport aircraft. The update comes months after the two companies signed a strategic collaboration agreement, and it marks a significant step forward for India’s aviation manufacturing ambitions.
A Strategic Collaboration Takes Shape
Adani Defence & Aerospace and Embraer signed a Memorandum of Understanding in January 2026 to jointly explore opportunities in aircraft manufacturing, supply chain development, aftermarket services, and pilot training in India. The partnership is designed to support India’s Regional Transport Aircraft (RTA) programme while aligning with the government’s Aatmanirbhar Bharat (self-reliant India) initiative and the UDAN regional connectivity scheme, which aims to link smaller cities to the national aviation network using regional aircraft.
Why Dholera Was Chosen
Dholera Special Investment Region, located near Ahmedabad, is being developed as one of India’s first greenfield smart industrial cities, with world-class infrastructure, connectivity, and an ecosystem designed to attract large-scale manufacturing investment. The proposed assembly facility is expected to leverage this readiness, positioning Dholera as an emerging hub for aerospace manufacturing rather than just semiconductors and heavy industry, which the region is already known for.
What the Project Could Mean for India
If the plan proceeds as envisioned, the facility would assemble Embraer’s regional jets, potentially including its E-Jet family of aircraft, which are widely used on regional routes globally. The project is expected to:
- Accelerate industrial growth in and around Dholera
- Attract significant domestic and international investment
- Create thousands of direct and indirect jobs in high-precision manufacturing, avionics, and composites
- Build a foundation for a broader aerospace manufacturing ecosystem in India
- Support India’s long-term goal of reducing dependence on imported aircraft
The Road Ahead
While the site identification is a major milestone, industry executives have noted that the assembly line’s rollout will depend on firm commitments from airlines for aircraft orders. Embraer’s leadership has indicated that establishing a production line without confirmed demand would not be commercially viable, meaning the next phase hinges on order books from Indian carriers. Officially, commercial production is being targeted around 2028, subject to these commitments and further implementation planning.
A Stronger Economy, A Smarter Future
For Dholera, this development adds to a growing list of global and domestic industry leaders choosing the region for large-scale projects. As infrastructure matures and confidence builds, Dholera is increasingly being positioned as a future-ready industrial and aerospace hub, supporting the broader vision of a stronger economy and a greater Dholera.
Frequently Asked Questions (FAQs)
Adani Defence & Aerospace and Embraer have proposed setting up a final assembly line for regional aircraft in the Dholera Special Investment Region, Gujarat.
The two companies signed a Memorandum of Understanding in January 2026 to collaborate on regional transport aircraft manufacturing in India.
Dholera is being developed as a planned greenfield smart industrial city with strong infrastructure, making it an attractive site for large manufacturing investments.
Commercial production is being targeted around 2028, but this depends on confirmed aircraft orders from Indian airlines.
Industry estimates suggest the project could create thousands of direct and indirect jobs in aerospace manufacturing and related sectors.
