Tata, Airbus Spain launch military aircraft factory in Indian state

VADODARA, India: Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated India's first private military aircraft manufacturing plant on October 28 in Vadodara, Gujarat, advancing New Delhi's goal of bolstering domestic defense production.

The Tata Aircraft Complex, developed in partnership with Airbus Spain, will produce the C-295 military transport aircraft, which is intended to enhance the operational capabilities of the Indian air force.

Sanchez praised the project as a realization of Modi's vision to establish India as an industrial and investment powerhouse.

"This partnership between Airbus and Tata will contribute to the progress of the Indian aerospace industry and will open new doors for the arrival of other European companies," he added.

Tata Group Chairman Natarajan Chandrasekaran also highlighted the significance of the project for India's defense industry, attributing the idea to the late Ratan Tata, the former Tata chairman.

Under a US$2.5 billion agreement signed in 2021, Airbus will deliver the first 16 C-295 aircraft from its facility in Seville, Spain, with six already supplied to the Indian Air Force. Tata Advanced Systems Ltd will manufacture the remaining 40 at the Vadodara plant, scheduled to deliver the first India-made C-295 by 2026. The versatile aircraft can transport troops, perform medical evacuations, support disaster relief, and conduct maritime patrols.

Since 2014, Modi has promoted India's role as a global manufacturing hub, prioritizing sectors like infrastructure, pharmaceuticals, and defense. To modernize the military, India has eased restrictions on foreign direct investment in the defense sector and encouraged private sector involvement, previously limited to government entities.

Sanchez's visit marks the first time a Spanish leader has been to India in 18 years. Over two days, he will hold talks with Modi, meet Indian Foreign Minister Subrahmanyam Jaishankar, and travel to Mumbai to engage with trade and industry leaders. His itinerary also includes a visit to Bollywood film studios aimed at fostering collaboration between India's and Spain's entertainment industries.

India and Spain's bilateral trade was nearly US$10 billion in 2023. According to India's Foreign Ministry, over 200 Spanish companies operate in India, and approximately 80 Indian companies have a presence in Spain. The two leaders are expected to sign agreements to enhance cooperation in trade, information technology, renewable energy, and defense.