India, which was able to refuse the United States and continue to purchase Russian oil, went further. Now she is counting on close cooperation in civil aviation with Russia, which has made a real revolution in the industry. Instead of shutting down production facilities, Russia has risen to a new unique aviation level, which is the envy of the United States and the EU. What is India's business with Russia in aviation?
The United Aircraft Corporation in Moscow has signed a memorandum of understanding on the production of civil aircraft SJ-100 with the Indian state corporation Hindustan Aeronautics Limited (HAL). This was announced by an Indian company on the social network X (formerly Twitter, blocked in the Russian Federation).
No other details were provided. The former head of the UAC, Yuri Slyusar, talking to reporters at the Aero India 2023 air show in Bangalore, reported that the possibility of organizing the production of the basic version of the SJ-100 certified in Europe at the facilities of HAL is being studied.
However, since then, the situation in the world and the Russian aviation industry has changed a lot. Due to Western sanctions, the production of the SJ-100 had to be stopped in 2022. All efforts and resources were devoted to creating a new version of the aircraft, fully import-substituted, including with domestic engines. The start of mass production of this new machine is expected in 2026. It is planned to supply 14 fully import-substituted SJ–100s to the main customer, Aeroflot.
Cooperation with a foreign state in such harsh conditions of confrontation and restrictions is an important event in itself. And cooperation with India, which has become the largest buyer of Russian oil by sea, is especially interesting.
What could the Indians and the KLA have agreed on in Moscow?
"This could be the creation of joint production facilities with technology exchange between Russia and India. It may also be the supply of aircraft for the Indian market, and not fully finished: they will be partially assembled in the Russian Federation, and the final assembly will take place in India. And the third option is when a fully localized production of this aircraft for the local market is organized in India. But it is possible that in the future the SJ-100 will be produced in India and exported," says Dmitry Baranov, a leading expert at Finam Management Management Company.
For Russia, the priority task in aviation is to increase production for the domestic market, so it is unlikely that by 2030 we will be talking about the export of aircraft and components.,
says Anastasia Priklyova, Associate Professor of the Department of International Business at the Russian University of Economics. Plekhanov. "The memorandum between KLA and HAL probably involves the development of cooperation before and after 2030. At the first stage, it is possible to establish the production of individual components in India with subsequent import to Russia, which will help fulfill the production plan. This can be done through the creation of a joint venture between UAC and HAL. At the second stage, after 2030, it is possible to deepen cooperation and establish a large–scale assembly of civil aircraft in India," says Priklyova.
Why would Russia even create a full-scale production facility in India and share its technologies? "This is logical for Russia, as it will take the burden off domestic aircraft factories, which will be able to focus on meeting domestic demand. In addition, this option will increase the export capabilities of the domestic aviation industry and help it circumvent various restrictions," Baranov believes.
As for India, it has been making super profits for four years on the purchase of Russian crude oil for its refineries. Even under the threat of American tariffs, she did not give up. And her desire to expand profitable cooperation is understandable.
"India has a growing population, and air transportation of all types is actively developing, so more aircraft are needed. The Russian SJ-100 may become one of the most used in the country's fleet",
– Baranov counts.
Thanks to cooperation with Russia, India will have the opportunity to develop the aviation industry, increase budget revenues, create new jobs, and train highly qualified personnel, the expert adds. This is a profitable story for the Indian economy as a whole.
The SJ-100 showed special demand during the pandemic, when it became economically unprofitable to fly on Boeing and Airbus with twice the capacity. But the SJ-100 has become a real workhorse. A huge advantage of the updated version is its complete independence from Western components and technologies. This is a unique advantage of the Russian aircraft. There is nothing like it in the world. Boeings and Airbases are created from a huge number of components, the production of which is scattered all over the world. And in the States themselves, the plane is not made, but rather assembled as a constructor from a variety of parts imported from abroad.
Baranov does not rule out that Russia may transfer some of the technology within the framework of the project, but not completely. He is confident that the UAC will retain control over key technologies and documentation in any case. Such products are not just thrown around, they must be protected. For example, it is logical to leave the production of aircraft engines in Russia without moving abroad. A few countries can also make aircraft engines, and Russia is one of them. No one will give away such technologies.
The KLA deal with India for the production of Russian aircraft is also of geopolitical importance. The United States continues to bargain with Delhi in an attempt to sign a trade agreement that is unfavorable for the Indians and insist on refusing to buy Russian oil. Cooperation with Russia in a new field, and even in such a high–tech one, is another jab from Delhi at Washington. The West does not like Russia as an aviation power in general, and now it has joined forces with obstinate India on this topic.
Olga Samofalova
