In a significant move within the aerospace industry, Brazil’s Embraer and U.S.-based Lockheed Martin are vying to enhance their manufacturing presence in India, as they compete for a lucrative $10.5 billion contract. This contract involves the supply of 60 medium transport aircraft for the Indian Air Force, marking one of the country’s largest military aviation procurements.
Facing the challenge of replacing its outdated Soviet-era Antonov An-32 aircraft, India has sparked a formal competition between Embraer’s C-390 Millennium and Lockheed Martin’s C-130J Super Hercules. The process began in August when a Request for Proposal was issued to five Indian companies, emphasizing the need for domestic production after the initial aircraft delivery.
Embraer, in collaboration with its local partner Mahindra Defence, has pinpointed Nagpur as a potential assembly site for the C-390 Millennium, should they secure the contract. “Identifying Nagpur as a potential location for an assembly facility is an important step in building a robust, long-term aerospace ecosystem in the country,” stated Bosco da Costa Junior, Embraer’s president and CEO of Defense & Security, in a joint announcement with Mahindra.
Meanwhile, Lockheed Martin, which already operates 12 C-130J Super Hercules aircraft within the Indian Air Force, is proposing an upgraded version, the C-130J-30 in Block 8.1.2 configuration. The company plans to manufacture 12 of these aircraft in the U.S. and the remaining 48 in India, in partnership with Tata Advanced Systems Limited.
Lockheed’s existing collaboration with Tata involves producing key aircraft components locally, including the empennage. Dan Tenney, Lockheed Martin’s senior vice president for global business development and strategy, highlighted the potential for expanding their industrial footprint in India through this contract.
India’s stringent requirements mandate a minimum of 40% domestic content for the new aircraft, which must also be capable of operating in high-altitude and rugged conditions due to the country’s geographic challenges. The aircraft will serve multiple roles, from troop transport to disaster relief missions.
The submission deadline for bids is set for early December, after which technical evaluations will commence. This push aligns with India’s ongoing efforts to boost local production and technology transfer, aiming to solidify its defense manufacturing sector.






