• Source:JND
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In a major blow to US President Donald Trump’s sanctions and tariffs, India’s Hindustan Aeronautics Limited (HAL) and Russia's Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) have signed a Memorandum of Understanding (MoU) to produce for the first time a passenger aircraft, the SJ-100, in India.

The agreement was inked in Moscow on Monday, according to a press release by Hindustan Aeronautics Limited (HAL). HAL shared details of the signing on X, stating, "HAL and Public Joint Stock Company United Aircraft Corporation (PJSC-UAC) Russia signed an MoU for production of civil commuter aircraft SJ-100 in Moscow, Russia on October 27, 2025."

Why is it a big blow to Trump

The development came as Trump imposed massive tariffs on India for its continuous purchase of Russian oil. Recently, the Trump administration has also imposed sanctions on Russia’s two major oil companies in order to force Russian President Vladimir Putin to end the ongoing Ukraine war. Trump, very often, accused New Delhi of supporting war by purchasing crude from Moscow.

Main features of SJ-100

key features of sj 100

India has said it does not subscribe to unilateral sanctions and has criticised the targeting of its ties with Moscow as unjustified and unfair, while accusing the West of double standards because the EU and the US still buy Russian goods worth billions of dollars.

Why the project is being dubbed as big 'Make In India' push

The SJ-100 is a twin-engine, narrow-body aircraft currently in operation with more than 16 commercial airline operators.

Over 200 such aircraft have already been produced. Under the new arrangement, HAL will have the rights to manufacture the SJ-100 for India's domestic customers, a move seen as crucial for enhancing short-haul connectivity under the government's UDAN scheme. This collaboration represents the first time a "complete passenger" aircraft will be produced in India since the AVRO HS-748 project, which began in 1961 and ended in 1988.

According to the release, the partnership between HAL and UAC reflects the mutual trust that the two organisations have developed over years of collaboration on aerospace projects.

Why this project is crucial for India

The initiative is expected to help meet India's growing aviation needs. Industry estimates suggest that over the next decade, the country will require more than 200 jets in this category to strengthen regional connectivity, along with an additional 350 aircraft to cater to the Indian Ocean region and nearby international tourist routes.

"The manufacturing of the SJ-100 aircraft marks the beginning of a new chapter in the history of the Indian aviation industry. It's a step towards fulfilling the dream of 'Aatmanirbhar Bharat' in the civil aviation sector," the release said. HAL said that the project is expected to boost local manufacturing, provide opportunities for private industry participation, and generate both direct and indirect employment across the aviation value chain.

(With inputs from agency)

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