Brazilian aircraft manufacturer Embraer and the Mahindra Group are planning an investment of around ₹6,000 crore to develop an aircraft assembly facility in Nagpur, Maharashtra, strengthening India’s aviation manufacturing and aerospace capabilities.
The proposed facility is expected to support aircraft assembly and could become an important part of the companies’ plans to expand aerospace manufacturing activities in India. The investment would also add to Nagpur’s growing role as an aviation and logistics centre.
The project is expected to generate demand for a wider network of suppliers and service providers, including component manufacturers, engineering companies, maintenance specialists and logistics operators. Development of an aerospace manufacturing ecosystem could create opportunities for Indian companies to participate in global aviation supply chains.
Nagpur’s central location provides logistical advantages for moving aircraft components and other specialised cargo to and from manufacturing facilities. The city is also connected to major road, rail and air networks, supporting the movement of high-value and time-sensitive aerospace equipment.
The planned investment comes as India seeks to increase domestic aircraft manufacturing and strengthen its position in the global aerospace industry. The country has been encouraging greater participation by Indian companies in aircraft production, components and related engineering services.
For Mahindra Group, the proposed project would further expand its presence in the aerospace sector, while Embraer could gain additional manufacturing capabilities and access to India’s growing aviation market and engineering talent base.
An aircraft assembly facility can also support localisation by encouraging suppliers to establish production capabilities close to the main manufacturing operation. Over time, this could help develop a broader aerospace cluster in and around Nagpur.
The project would represent a significant industrial investment for the region and could support employment across manufacturing, engineering, logistics and associated services.
Further details on the investment structure, aircraft models, production capacity and project timeline are expected as the proposal progresses. The planned ₹6,000 crore facility highlights the increasing role of India in global aerospace manufacturing and the potential for deeper collaboration between international aircraft manufacturers and Indian industrial groups.