India and Russia expand aircraft manufacturing talks

India and Russia have expanded discussions regarding the domestic manufacturing of aircraft to support India’s regional connectivity goals. Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu confirmed that talks involve a Memorandum of Understanding between Hindustan Aeronautics Limited (HAL) and Russian partners to produce the IL-114 turboprop and the Sukhoi Superjet 100 jet-engine aircraft.

In a related development for the aviation sector, Russia’s United Aircraft Corporation (UAC) has entered into agreements of intent with three Indian aviation companies—Pinnacle Air, Air Kerala, and Sleek Aviation—for the potential supply of 105 Il-114-300 regional turboprop aircraft. These agreements aim to connect underserved cities and smaller airports through India’s growing regional network.

Beyond aviation, India is positioned for significant industrial expansion. A report by Jefferies identifies six key sectors poised to drive the next wave of growth: semiconductors, space, aerospace, electronics, solar manufacturing, and data centres. The semiconductor sector has already seen approximately $20 billion in investment, while the space economy is targeted to reach $40-45 billion by 2030.