Brazil Eyes Embraer Investment in India, Deeper Defence Ties at G20 Talks

Brazil is exploring deeper defence cooperation and potential investment involving Embraer aircraft in India, its Industry and Trade Minister Márcio Fernando Elias Rosa said after meeting Commerce and Industry Minister Piyush Goyal on the sidelines of the G20 trade talks in Milwaukee.

The discussions also covered the possibility of an agreement between the two economies, with Rosa describing India as a significant partner for Brazil.

“India is a highly important trading partner for Brazil. It is an economy that is important to the whole world. What we discussed is about potentially having an agreement between the 2 economies,” he said.

“We spoke about defence cooperation and the possibility of having investments of Embraer aircraft in India,” he added.

The minister’s remarks outlined areas under discussion without specifying investment amounts or terms for a potential agreement.

Mahindra for Military Aircraft, Adani for Civilian Business

The diplomatic engagement comes as Embraer advances separate partnerships for India’s military and commercial aviation markets.

In an interview with ANI, Embraer Defence & Security President and CEO Bosco Da Costa Junior said Mahindra Group remained its partner for the Indian Air Force’s 60-aircraft Multi-Role Transport Aircraft programme. Adani Group is its partner on the civilian side.

Embraer is pitching its KC-390 Millennium military transport aircraft for the IAF requirement, while its commercial aviation business is exploring opportunities arising from demand for regional flights and connectivity.

Bosco said Embraer selected Mahindra after evaluating India’s aviation ecosystem and potential partners following a C-390 demonstration in the country in 2023.

“On the military side, Mahindra is our partner to pursue this case around the transport aircraft,” he said. “So, Adani is our partner for the civilian side. This is not going to change.”

A Bid for India’s Transport Fleet

The Defence Ministry has issued requests for proposal to five entities: Mahindra, Tata, Hindustan Aeronautics Limited, Reliance Defence and Adani.

The programme seeks to address the IAF’s need to replace ageing transport platforms, including the AN-32. Bosco said Embraer was working to meet the required timelines and argued that its twin-engine C-390 could help standardise the medium transport fleet.

“They need this capability fast to increase the availability of their fleet. And again, I think the C-390 is the perfect fit for them,” he said.

He also made a competitive pitch against the Tata-Lockheed Martin C-130J, claiming that the KC-390 could carry more and fly faster and higher, with strong aircraft availability and mission performance.

Those assertions form part of Embraer’s sales pitch as it pursues the Indian programme.

India as a Supply and Maintenance Hub

Beyond an aircraft order, Embraer sees India as a potential base for expanding its global supply and maintenance networks.

“We would like to use India as a hub for us because, again, we need to expand our supply chain base and our MRO base because we are growing,” Bosco said, referring to maintenance, repair and overhaul facilities.

“I can’t support operators worldwide without growing my network from a global perspective.”

His comments place the Indian opportunity within Embraer’s wider industrial strategy, encompassing aircraft sales, suppliers and support infrastructure.

G20 Talks Provide the Backdrop

Goyal’s meeting with Rosa formed part of a series of bilateral engagements during the two-day G20 trade ministerial hosted by US Trade Representative Jamieson Greer.

The Milwaukee gathering is addressing industrial overcapacity, forced labour in supply chains, food trade and proposed changes to the Most-Favoured-Nation principle.

India has reiterated its support for an open, equitable and non-discriminatory multilateral trading system with the World Trade Organization at its core, while seeking sufficient policy space for developing countries.

Goyal is also pursuing discussions with Washington on a bilateral trade agreement and an interim deal. For Brazil, the meeting offered an opportunity to put defence and aerospace cooperation firmly on the bilateral agenda.

With inputs from ANI