India and Russia have signed an agreement on the joint production of passenger aircraft – a few weeks before the visit of dictator Vladimir Putin, which indicates the resilience of relations between Moscow and New Delhi, despite growing pressure from the White House. This is reported by Bloomberg, writes UNN.
Details
State-owned Hindustan Aeronautics Ltd. (HAL) signed an agreement with Russia's United Aircraft Corporation (UAC) to produce SJ-100 civil regional aircraft, HAL said in a statement on Tuesday. The statement does not specify whether the agreement involves the transfer of technology to India or the amount of investment in the project.
The publication notes that the announcement of the agreement's signing came ahead of Putin's planned visit to India in December — at a time when relations between the countries are under close scrutiny. US President Donald Trump and members of his administration have repeatedly criticized New Delhi for continuing to purchase Russian oil and imposed 50% tariffs on Indian goods, calling it punishment for both trade barriers and close ties with Moscow.
This will also be the first time a full-fledged passenger aircraft will be manufactured in India. This cooperation between HAL and UAC is a result of mutual trust between the organizations
Under the agreement, HAL will receive the rights to produce the SJ-100 — a twin-engine narrow-body aircraft for Indian customers, the company added.
This agreement strengthens Prime Minister Narendra Modi's initiative to develop local production and can provide India with more aircraft for short-haul transportation, as the country plans to double the number of airports to 350 by 2047
HAL did not respond to Bloomberg's request for clarification on the amount of capital to be invested in the project or which airlines have already expressed interest in the new aircraft. The company also faces difficulties in producing enough fighter jets for the Indian Air Force, raising concerns about the country's defense readiness.