In a move that could reshape bilateral defense relations, India and Brazil are negotiating a barter-style defense deal to exchange military platforms of equal value instead of traditional cash payments. Local reports suggest India is eyeing Brazil’s Embraer C-390 Millennium transport aircraft, while Brazil could procure Indian-made systems such as fighters or helicopters.

The proposed arrangement underscores both countries’ intent to strengthen self-reliance and deepen cooperation under the BRICS framework. If approved, it would mark one of the first major barter-based defense deals between two major emerging economies.

The Embraer C-390 is competing in India’s Medium Transport Aircraft tender, which seeks to replace Soviet-era IL-76s. With the ability to carry 26 tons of cargo, refuel aircraft midair, and operate from unprepared runways, it fits India’s requirement for versatile logistics in mountainous regions. Embraer has offered to establish local production in India under the “Make in India” initiative.

Brazil’s participation would also bring benefits, as its Air Force looks to replace aging F-5 jets. The country has shown growing interest in India’s Tejas Mk1A and the LCH Prachand, both suited for diverse operational environments from the Amazon basin to maritime patrol zones.

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