India, Spain strengthen defence ties with new aircraft manufacturing facility

New Delhi, Oct 28: Prime Minister Narendra Modi and Spain President Pedro Sanchez, who is on a two-day official visit in India, jointly inaugurated the TATA Aircraft Complex in Vadodara, Gujarat, on Monday morning.

This landmark facility, part of Tata Advanced Systems Ltd, will manufacture C-295 military transport aircraft, marking a giant milestone in India’s “Make in India” initiative. The collaboration is set to not only reinforce India’s capabilities in aerospace manufacturing but also deepen its partnership with Spain, a key European ally.

India’s first private-sector for military aircraft/Aerospace Manufacturing

The newly inaugurated facility is the first private-sector Final Assembly Line (FAL) for military aircraft in India, setting a new precedent for defence manufacturing in the country. Under the ambitious C-295 program, India will build 40 of the 56 aircraft ordered for the Indian Air Force, while the remaining 16 will be delivered directly from Airbus’s facilities in Spain. The C-295 aircraft, a highly versatile military transport plane, can operate from short or unpaved airstrips and is suited for a range of missions, from troop transport to medical evacuation.

The project, over $3 billion, represents a major shift in India’s defence landscape. India has been one of the world’s largest importers of defence equipment, relying heavily on foreign technology to meet its military needs. With this facility, India is taking a bold step towards reducing its dependence on imports and boosting local manufacturing, a cornerstone of the “Make in India” initiative. This move not only positions India as a critical player in the global defence supply chain but also underscores its ambition to become a net exporter of defence equipment.

Strategic Partnership with Spain

Prime Minister Modi, during the inauguration ceremony, emphasised that this collaboration is part of a broader vision to turn India into a global hub for manufacturing and innovation. “This facility is not just about manufacturing aircraft; it is about creating a vibrant defence ecosystem that will bring jobs, skills, and investment to India,” he said. Modi also stressed that the project is a testament to India’s increasing speed in executing large-scale infrastructure projects, pointing out that the foundation stone for the facility was laid in October 2022, and now, just two years later, it is ready for production.

For Spain, the collaboration represents a deepening of its economic and strategic ties with India. Prime Minister Pedro Sanchez, on his first official visit to India, described the project as “a symbol of what our two nations can achieve when we come together.” Sanchez highlighted that the C-295 project will not only boost India’s defence capabilities but will also contribute to global security and stability. His visit marks a renewed focus on strengthening trade, defence, and technology collaboration between India and Spain, which have traditionally enjoyed strong cultural ties.

The Spanish government has been keen on expanding its influence in the Indo-Pacific, and the C-295 program aligns with Spain’s broader strategy of fostering closer relations with India. Sanchez’s visit is also significant as it marks the first by a Spanish leader to India in 18 years, signalling a renewed push to elevate bilateral relations.

Boosting India’s Defence Ecosystem

The C-295 facility is part of a broader shift in India’s defence manufacturing strategy. Over the past decade, the Indian government has taken decisive steps to develop a self-reliant defence ecosystem. The establishment of defence corridors in Uttar Pradesh and Tamil Nadu, the restructuring of ordnance factories, and the increasing role of the private sector are all part of this transformation.

India’s defence exports have increased dramatically, with the country now supplying military equipment to over 100 nations. Modi proudly noted this growth during the ceremony, pointing out that defence exports have risen 30-fold in the past decade. The Vadodara facility is expected to further boost these figures by producing aircraft not just for India, but potentially for export markets as well.

Tata Advanced Systems Ltd, a key player in India’s defence sector, will lead the production at the Vadodara plant, but the project also includes contributions from major defence public sector units like Bharat Electronics Ltd and Bharat Dynamics Ltd, as well as numerous Micro, Small, and Medium Enterprises (MSMEs). This comprehensive supply chain will foster local expertise, create thousands of jobs, and provide opportunities for smaller enterprises to participate in high-tech manufacturing.

Industrial and Cultural Synergy

The impact of the C-295 project goes beyond defence. Modi stressed that the new facility would play a crucial role in India’s broader industrial landscape, particularly in supporting MSMEs and generating skilled jobs. He highlighted that the factory will manufacture over 18,000 aircraft parts, benefiting small businesses across the country and integrating India into the global aerospace supply chain. “We are looking at this project not just as the manufacturing of transport aircraft, but as a major step towards our goal of making India a global hub for aviation,” Modi said.

Vadodara, known as an industrial city with a stronghold in sectors like pharmaceuticals, engineering, and heavy machinery, will now also become a significant player in the aviation sector. Modi pointed out that the city’s Gatishakti University, which specialises in training professionals for India’s transportation and infrastructure sectors, will support this transformation, producing the next generation of aerospace engineers and technicians.

The cultural ties between India and Spain also came to the fore during the event. Modi invoked the legacy of Spanish poet Antonio Machado, drawing parallels between India’s industrial strides and Machado’s famous line, “As we start treading towards the goal, the path towards the goal is created automatically.” He also spoke warmly of the connections between the two nations, noting how Indian fans are passionate about Spanish football, including the much-talked-about Real Madrid-Barcelona match that took place just a day before the inauguration. Sanchez echoed these sentiments, expressing pride in Spain’s cultural and industrial exchanges with India.

The Future of Indian Aviation

India’s vision for the C-295 plant extends beyond military production. India’s civil aviation sector is growing at an unprecedented rate. Indian airlines have placed orders for over 1,200 new aircraft, and the demand for indigenous production facilities is expected to rise. Modi highlighted that India’s air connectivity, especially to smaller cities, is rapidly expanding, and the Vadodara plant could play a crucial role in supporting this growth by potentially manufacturing civil aircraft in the future.

Highlights of the Visit of the President of the Government of Spain to Vadodara

Inauguration of C-295 Aircraft Plant: Prime Ministers Narendra Modi and Pedro Sanchez inaugurated the Tata-Airbus C-295 aircraft plant in Vadodara, marking India’s first private-sector military aircraft assembly line. The first Made in India aircraft is set to roll out by September 2026.

Local Manufacturing and Job Creation: Over 18,000 aircraft parts will be manufactured locally, creating more than 10,000 jobs across India.

Agreements on Key Sectors: Cooperation agreements were signed in infrastructure, railways, renewable energy, culture, and tourism.

MoU on Rail Transport: The MoU will enhance collaboration in the planning, design, development, and operation of infrastructure for passenger and freight networks as well as urban railway systems.

Cultural and Technological Focus in 2026: The year 2026 will be celebrated as India-Spain Year of Culture, Tourism, and AI.

Cultural Exchange Program (2024-28): A bilateral program was signed to promote exchanges in music, dance, theatre, literature, museums, and festivals.

Customs Cooperation Agreement: A mutual assistance agreement aims to enhance information sharing to combat Customs offences.

New Consulates: Spain announced the establishment of a consulate in Bengaluru, and India operationalised its consulate in August 2024.