India and Brazil are reportedly negotiating a landmark defense barter deal that could allow both nations to exchange military platforms instead of making cash payments. According to local sources, the proposal would see India acquiring Embraer’s C-390 Millennium transport aircraft, while Brazil would receive Indian-made defense systems of comparable value.
If concluded, the agreement could redefine defense cooperation between the two nations, deepening strategic ties under the BRICS framework while reducing dependency on traditional suppliers. It would also give a major boost to India’s defense export ambitions and its “Make in India” drive.
The Embraer C-390, a leading contender in India’s Medium Transport Aircraft (MTA) program, is designed to replace the Indian Air Force’s aging Ilyushin Il-76 fleet. The aircraft can carry up to 26 tons of cargo, perform midair refueling, and operate from short or semi-prepared runways — capabilities well-suited for missions in the Himalayas and other remote regions.
Embraer has also offered local assembly of the C-390 in India to support domestic manufacturing. Meanwhile, Brazil is eyeing India’s Tejas Mk1A fighter as a cost-effective complement to its Gripen fleet and has expressed interest in the Light Combat Helicopter (LCH) Prachand for operations in the Amazon and coastal zones.
