India’s booming aviation sector, now among the fastest-growing in the world, is once again forcing policymakers and industry experts to confront a long-standing question: can the country realistically build its own passenger aircraft? With air travel demand rising sharply, the issue has gained renewed urgency as domestic carriers place massive aircraft orders while grappling with global supply constraints.
IndiGo and Air India, which together dominate more than 90% of India’s aviation market, have ordered nearly 1,500 aircraft for delivery over the next decade. These expansion plans, however, depend almost entirely on Boeing and Airbus, the two manufacturers that together account for 86% of global commercial aircraft supply. In 2024, both companies were dealing with record delivery backlogs, a situation expected to delay aircraft deliveries worldwide, including to Indian airlines.
Against this backdrop, attention turned to a new development in October when India and Russia signed a preliminary agreement in Moscow to manufacture the SJ-100 passenger aircraft in India. The move raised hopes that domestic aircraft production could finally move beyond decades of stalled ambitions. Delhi has described the proposed collaboration as potentially transformative, particularly for short-haul regional routes.
The SJ-100 is a twin-engine aircraft capable of carrying up to 103 passengers and is currently operated by several Russian airlines, according to its manufacturer, United Aircraft Corporation. However, the proposed manufacturing plan faces significant uncertainty. Analysts have raised concerns about costs, timelines, and whether the Russian manufacturer can quickly establish and scale production facilities in India.
Production data shows that around 200 SJ-100 aircraft were delivered between 2008 and 2020, but the programme suffered major setbacks after Russia’s invasion of Ukraine in 2022. Western sanctions disrupted access to critical components, forcing the company to replace nearly 40 systems and roll out an import-substituted version of the aircraft in 2023. Europe’s aviation safety regulator subsequently withdrew certification, effectively barring the aircraft from European airspace.
India’s own history of aircraft manufacturing has been marked by ambition but limited success. The National Aerospace Laboratories was established in 1959 to develop civil aircraft, but its achievements have largely been confined to small trainer planes such as the two-seater Hansa. In the 1960s, Hindustan Aeronautics Limited produced Avro 748 aircraft under licence, while a later collaboration with Germany’s Dornier in the 1980s led to limited production of 19-seat planes.
Efforts to design indigenous passenger aircraft have also struggled. The Saras programme, launched with Russian assistance, suffered a fatal crash in 2009, leading to a prolonged halt. Although a revised prototype, Saras MK2, has since been developed, certification is still pending. Similarly, the Regional Transport Aircraft project, envisaged as a 90-seater comparable to the SJ-100, has seen little movement since feasibility reports were submitted more than a decade ago.
Experts say structural challenges have long constrained India’s aircraft manufacturing ambitions. A lack of sustained domestic demand until recently, limited skilled manpower, and an underdeveloped manufacturing ecosystem have all played a role. Some believe collaboration with global partners remains the most practical route forward.
Supporters of the SJ-100 initiative argue that it offers a workable interim solution while India’s indigenous projects remain incomplete. For Russia, wider adoption of the aircraft would help demonstrate its ability to produce civil aircraft independent of Western technology. While sanctions and technical hurdles remain risks, proponents say these factors were likely considered by both sides.
Beyond aircraft availability, India’s aviation expansion also faces operational challenges. Earlier this month, IndiGo was forced to cancel thousands of flights due to pilot roster issues, leaving passengers stranded and highlighting the growing strain on manpower as the sector expands at breakneck speed.
