What Happened
- Brazilian aircraft maker Embraer and the Mahindra Group announced plans to establish a Maintenance, Repair and Overhaul (MRO) facility in India for the C-390 Millennium military transport aircraft.
- The facility is part of Embraer's localisation strategy following the C-390's selection in the Indian Air Force's Medium Transport Aircraft (MTA) programme.
- The proposed MRO facility will provide base and heavy maintenance, structural inspections, component repair and overhaul, avionics support, and training — supporting high operational readiness of the C-390 fleet.
- Embraer and Mahindra Group had already signed a strategic partnership in October 2025 to produce the C-390 Millennium in India, with plans for local manufacturing aligned with the Make in India initiative.
- Embraer is also evaluating India's potential as a regional MRO hub for all C-390 operators globally, which would position India as an aerospace maintenance export centre.
- The collaboration aims to create high-skill employment in India and integrate Indian aerospace companies into Embraer's global supply chain.
Static Topic Bridges
The C-390 Millennium and India's Medium Transport Aircraft Programme
The Embraer C-390 Millennium is a 4th-generation military transport aircraft developed by Brazil and first flown in 2015. With a maximum payload of 26 tonnes and higher speed and range than aircraft of comparable size, it can perform troop transport, cargo airlift, airdrop operations, medical evacuation, search-and-rescue, firefighting, and air-to-air refuelling. India's Medium Transport Aircraft (MTA) programme is an Indian Air Force requirement to replace ageing aircraft — the selection of the C-390 represents a significant diversification of India's defence procurement away from its traditional Russian and American suppliers, and marks Brazil as a new strategic defence partner for India.
- C-390 Millennium manufacturer: Embraer (Brazil), first flight: 2015
- Maximum payload: 26 tonnes
- Capabilities: Cargo/troop transport, airdrop, MEDEVAC, SAR, firefighting, air-to-air refuelling (tanker and receiver)
- Runway requirement: Can operate from unpaved/temporary runways
- Mission completion rate: Above 99% (in-service fleet)
- Embraer-Mahindra partnership signed: October 2025
- India's MTA programme: Requirement to replace older transport aircraft in IAF inventory
Connection to this news: The MRO facility announcement is the localisation follow-through to the October 2025 manufacturing partnership — signalling that India is not just purchasing the C-390 but building an indigenous maintenance and support ecosystem, consistent with the Atmanirbhar Bharat vision for defence self-reliance.
Make in India and Defence Manufacturing Indigenisation
Make in India, launched in September 2014, aims to transform India into a global manufacturing hub by facilitating investment, fostering innovation, and building best-in-class infrastructure. In the defence sector, Make in India is operationalised through the Defence Acquisition Procedure (DAP) and the FDI policy, which permits up to 74% FDI in defence manufacturing under automatic route and 100% with government approval. India has set a defence manufacturing target of Rs 1.75 lakh crore by 2025-26, with a defence export target of Rs 50,000 crore by 2028-29. The Defence Industrial Corridors in UP (Bundelkhand and Agra-Aligarh) and Tamil Nadu (Chennai-Coimbatore) support this ecosystem.
- Make in India: Launched September 25, 2014
- Defence FDI limit: 74% automatic route; 100% with government approval (FDI Policy 2020)
- DAP (Defence Acquisition Procedure) 2020: Prioritises domestic procurement, indigenisation
- Defence manufacturing target: Rs 1.75 lakh crore turnover by 2025-26
- Defence export target: Rs 50,000 crore by 2028-29
- Defence Industrial Corridors: UP Corridor and Tamil Nadu Corridor
- Atmanirbhar Bharat in defence: Positive Indigenisation List — items banned from import to force domestic production
Connection to this news: The Embraer-Mahindra MRO facility is a concrete instance of the Make in India / Atmanirbhar Bharat framework in action — a foreign OEM (Original Equipment Manufacturer) partnering with an Indian conglomerate to create domestic capabilities rather than simply exporting hardware.
MRO (Maintenance, Repair and Overhaul) Industry and India's Aerospace Ecosystem
MRO refers to all activities that ensure the airworthiness and operational readiness of aircraft — including scheduled maintenance, heavy repairs, component overhaul, and avionics upgrades. India's civil and military MRO sector has historically been underdeveloped: Indian airlines and the IAF sent aircraft abroad for maintenance, with an estimated Rs 15,000 crore leaving the country annually. The Union Budget 2021-22 rationalised GST on MRO services (reduced from 18% to 5%) to encourage domestic MRO development. Establishing India as a regional MRO hub is both an economic opportunity (high-skilled jobs, foreign exchange earnings) and a strategic necessity (reducing dependence on foreign MRO for frontline military aircraft).
- India's civil MRO market size: Estimated ~$1.7 billion (growing at ~10% CAGR)
- India's MRO expenditure abroad: ~Rs 15,000 crore annually (before 2021 reforms)
- GST on MRO services: Reduced to 5% (from 18%) in Union Budget 2021-22
- Atmanirbhar Bharat policy: Positive Indigenisation List includes maintenance capabilities
- Strategic benefit: Domestic military MRO avoids vulnerability of sending frontline aircraft abroad during tensions
- Embraer's vision: India as regional MRO hub for all C-390 operators
Connection to this news: Establishing a C-390 MRO facility in India converts a procurement decision into a long-term strategic and economic asset — creating high-skill jobs, building indigenous maintenance capability, and positioning India as a regional aerospace services hub, all while ensuring the IAF's C-390 fleet is sustainably supported without foreign dependency.
Key Facts & Data
- Aircraft: Embraer C-390 Millennium — 4th-generation military transport, payload 26 tonnes
- Partners: Embraer (Brazil) + Mahindra Group (India)
- Partnership signed: October 2025 (manufacturing); MRO facility announced: February 2026
- MRO services: Base/heavy maintenance, structural inspections, component overhaul, avionics support, training
- India's MTA programme: IAF requirement driving procurement
- Mission completion rate of C-390: Above 99%
- Make in India: Launched September 25, 2014
- Defence FDI limit: 74% automatic route; 100% govt approval route
- GST on MRO: Reduced from 18% to 5% (Budget 2021-22)
- India's annual MRO expenditure abroad: ~Rs 15,000 crore (historical estimate)