Two of the world’s biggest emerging powers are quietly negotiating one of the most unusual arms deals of the decade — and almost no Western capital is in the room. India and Brazil are working toward a barter: India would hand Brazil its homegrown Tejas Mk1A fighters and Prachand attack helicopters, and Brazil would ship India fleets of its C-390 Millennium transport jet.

No cash changes hands. No American or Russian supplier signs off. Two fellow BRICS members simply swap the aircraft each other needs — a model designed expressly to dodge tariffs, sanctions and the political strings that come with buying from Washington or Moscow.

If it closes, it would be a milestone in “South-South” defence cooperation, and it could reshape how mid-sized air forces arm themselves for the next twenty years.

The deal on the table

The centrepiece for India is the Embraer C-390 Millennium, a jet-powered tactical airlifter that has become one of the most talked-about transports on the market. It carries up to 26 tonnes, refuels other aircraft, and operates from short, unpaved runways — exactly the profile India needs for Himalayan resupply and island logistics.

Embraer has gone further than a simple sale. Through a partnership with India’s Mahindra Group, it has offered to set up assembly and a maintenance, repair and overhaul hub on Indian soil — aligning the bid with New Delhi’s “Make in India” policy. The company also claims the C-390 undercuts the rival Lockheed C-130J on operating cost.

What each side gets

In return, Brazil wants two Indian-built platforms. The Tejas Mk1A is a light, single-engine multirole fighter with a modern AESA radar — a candidate to supplement Brazil’s incoming Gripen E fleet and eventually replace its ageing F-5 Tiger IIs. The HAL Prachand is a high-altitude light combat helicopter suited to Brazil’s varied terrain.

The arrangement rests on a “balanced procurement” principle: if India buys Brazilian, Brazil commits to buying an equivalent value of Indian kit. Brazil’s ambassador to India, Kenneth da Nóbrega, has publicly confirmed the reciprocal intent on both sides.

Why now

The timing is no accident. Brazil has been squeezed by US trade pressure, including tariff threats that struck at companies like Embraer. India, meanwhile, has spent decades trying to wean itself off Russian hardware while resisting the conditions attached to American deals. A jet-for-jet barter between two BRICS economies sidesteps both problems at once.

That willingness to transfer technology — not just sell airframes — is the real lure. For both countries, the prize is industrial: building aircraft at home, keeping the jobs, and owning the supply chain rather than renting it.

The catch

Nothing is signed. The C-390 still has to win India’s Medium Transport Aircraft competition, and Brazil’s fighter and helicopter choices must clear their own approvals and offset requirements. Official selection is expected later in 2026, and barter deals of this scale are notoriously slow to convert from handshake to contract.

But the direction of travel is unmistakable. Two countries that the great powers have long treated as customers are increasingly choosing to trade with each other instead — on their own terms.

Embraer showcases the C-390 Millennium at Aero India — the aircraft at the heart of India’s transport decision.

Sources: FlightGlobal; Air Data News; defence.in; Indian Defense News; The Defense Post.