VADODARA, India — On Monday, Indian Prime Minister Narendra Modi joined Spanish Prime Minister Pedro Sanchez in unveiling India’s first private military aircraft manufacturing facility, a significant step towards enhancing domestic production in the defense and aerospace sectors.
Sanchez received a warm welcome during a roadshow in Vadodara, Gujarat, where crowds gathered, cheering and displaying banners in support of the visit.
Following this display of enthusiasm, the leaders launched the Tata Aircraft Complex, a manufacturing site dedicated to producing the Airbus C-295 transport military aircraft. This initiative is a collaborative effort with Airbus Spain and is intended for use by the Indian Air Force.
Sanchez praised the initiative as a manifestation of Modi’s vision “to transform India into an industrial powerhouse and an attractive destination for investment and business partnerships.” He added that this collaboration between Airbus and Tata would significantly benefit the Indian aerospace sector and pave the way for further European companies to enter the market.
Tata conglomerate’s chairman, Natarajan Chandrasekaran, recognized this occasion as a monumental moment for India’s defense industry, attributing the idea to the late Ratan Tata, the company’s former chairman, who had envisioned this project over ten years ago before his recent passing.
As part of a $2.5 billion agreement reached in 2021, Airbus is set to supply the first 16 aircraft from its assembly facility located in Seville, Spain—six of which have already been delivered to the Indian air force. Tata Advanced Systems Ltd is slated to manufacture an additional 40 C-295 aircraft at the Vadodara facility, with the first Indian-produced aircraft expected to be completed by 2026. Capable of transporting up to 71 troops or 50 paratroopers, the aircraft is designed for operations in remote areas and can also assist in medical evacuations, disaster relief, and maritime patrol missions.
Since assuming office in 2014, Modi has been committed to establishing India as a global manufacturing center across various sectors, including infrastructure, pharmaceuticals, and defense. The government has made strides in modernizing military equipment and fostering a private defense manufacturing sector, which was previously under exclusive control of state-run organizations. Measures have been put in place to facilitate foreign direct investment, aiming to encourage companies to set up operations in India.
This visit marks the first by a Spanish leader to India in 18 years. Modi and Sanchez had met previously during global summits in 2018 and 2021. Over the course of their two-day encounter, Sanchez is scheduled to engage in discussions with Modi to assess bilateral relations and will also meet with Indian Foreign Minister Jaishankar Subrahmanyam.
On Tuesday, Sanchez will head to Mumbai, India’s financial center and Bollywood hub, where he plans to engage with business leaders and visit film production studios to enhance cooperation between the Indian and Spanish entertainment sectors.
By 2023, bilateral trade between India and Spain has reached almost $10 billion. The Indian foreign ministry reports that more than 200 Spanish companies operate in India, while around 80 Indian firms are established in Spain.
The two leaders are anticipated to finalize agreements aimed at strengthening cooperation across multiple fields, including trade, information technology, renewable energy, and defense, as outlined by a statement from the Indian government.