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Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated India’s first private military aircraft manufacturing plant on October 28, 2024. The Tata Aircraft Complex in Gujarat state will produce Airbus C-295 transport military aircraft in collaboration with Airbus Spain.

Sanchez visited India on October 28, where he was welcomed with a flower-filled open-top parade alongside Modi. His visit comes at an important time as Madrid seeks to boost investment in the world’s fifth-largest economy.

The inauguration ceremony of the Tata Aircraft Complex took place in Vadodara, a city in the state of Gujarat state. The new state-of-the-art facility is dedicated to producing the Airbus C-295 transport military aircraft. The aircraft is expected to be deployed by the Indian Air Force, which is crucial for national security and operational readiness.

During the inauguration, Sanchez lauded the project as a triumph of Modi’s vision “to turn India into an industrial powerhouse and a magnet for investment and business-to-business collaboration.” He further emphasized the importance of this partnership, stating, “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.”

Natarajan Chandrasekaran, chairman of Tata Group, described the occasion as a historic day for India’s defense sector. He credited the late Ratan Tata, the former chairman of Tata Group who passed away earlier this month, for envisioning this project over a decade ago.

“Today’s inauguration marks the realization of a dream that Ratan Tata had for our defense capabilities,” Chandrasekaran said, highlighting the significant contributions of Tata in building India’s industrial landscape.

Airbus deal

The venture is part of a broader $2.5 billion deal signed in 2021, under which Airbus will deliver the first 16 C-295 aircraft from its final assembly line in Seville, Spain. To date, six aircraft have already been delivered to the Indian Air Force. Tata Advanced Systems Ltd. is set to manufacture an additional 40 aircraft at the new Vadodara facility, with the first Indian-made C-295 expected to roll off the production line in 2026.

The C-295 aircraft is designed to transport up to 71 troops or 50 paratroopers, making it a versatile asset capable of accessing remote locations. Its utility extends beyond troop transport; the aircraft can also facilitate medical evacuations, disaster response, and maritime patrol duties, enhancing India’s operational capabilities in various scenarios.

India’s quest for becoming a manufacturing hub

Since assuming office in 2014, Modi has prioritized transforming India into a global manufacturing hub, focusing on sectors such as infrastructure, pharmaceuticals, and defense. This initiative is part of a larger effort to modernize military equipment and foster a robust private defense manufacturing sector, previously dominated by government-run organizations.

The Indian government has also eased foreign direct investment regulations to attract international companies and encourage local production.

The visit by Sanchez marks the first official trip by a Spanish leader to India in 18 years, reflecting a renewed commitment to strengthening bilateral ties. Modi and Sanchez have previously interacted at global summits in 2018 and 2021, laying the groundwork for this significant partnership. Throughout their two-day visit, the leaders are expected to engage in discussions aimed at reviewing and enhancing ties between their nations.

Sanchez also visited Mumbai, India’s financial capital, where he met with trade and industry leaders and explored potential collaborations in the entertainment sector, including visits to Bollywood film studios. This engagement highlights the multifaceted nature of Indo-Spanish relations, extending beyond defense to trade and cultural exchanges.

As of 2023, bilateral trade between India and Spain reached nearly $10 billion, with over 200 Spanish companies operating in India and around 80 Indian firms active in Spain. The two leaders are anticipated to sign agreements that will further strengthen cooperation in diverse fields, including trade, information technology, renewable energy, and defense.