On Monday, Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sánchez jointly inaugurated the Tata Aircraft Complex at Tata Advanced Systems Limited (TASL) in Vadodara. This facility is set to manufacture Airbus’ C-295 military aircraft for the Indian Air Force (IAF) and aims to position India as an export hub for these aircraft.
A Milestone in Indian Aviation
The final assembly line for the C-295 at Vadodara represents the first dedicated military aircraft manufacturing unit in India’s aviation sector. Established by Tata Advanced Systems in collaboration with Airbus Spain, the project involves a substantial investment of $2.5 billion, with the initial deal signed in 2021. Modi emphasized that this initiative reflects the “new India’s work culture” and will create thousands of jobs while producing up to 18,000 parts domestically through various Micro, Small, and Medium Enterprises (MSMEs).
Export Ambitions
During the inauguration, PM Modi expressed confidence that the aircraft manufactured at the Vadodara plant will soon be exported to other countries, stating, “This is about the right plan and right partnership.” The C-295 program includes the procurement of 56 aircraft, with 16 to be delivered directly from Airbus in Spain and the remaining 40 manufactured locally. Prime Minister Narendra Modi tweets, “A boost to ‘Make in India’ and India-Spain cooperation.
Training and Collaboration
A group of 200 engineers from Tata Group is currently undergoing training in Spain to equip them with the necessary skills for aircraft production. The C-295, capable of carrying up to nine tonnes or 71 troops, is powered by two Pratt & Whitney Canada PW127G turboprop engines, which will be imported for the aircraft.
Strengthening India-Spain Relations
Modi and Sánchez also discussed enhancing bilateral cooperation during their meeting. Sánchez remarked that the partnership between Airbus and Tata would foster growth in the Indian aerospace industry and pave the way for more European companies to enter the Indian market.
This visit marks the first by a Spanish Prime Minister to India in 18 years, highlighting the strengthening ties between the two nations. Spain is currently the 16th largest investor in India, with cumulative Foreign Direct Investment (FDI) of $4.2 billion from April 2000 to June 2024. More than 230 Spanish companies operate in India, while around 80 Indian firms are active in Spain.
Economic Impact
In terms of trade, two-way exchanges between India and Spain reached $9.9 billion in 2023, with India’s exports valued at $7.17 billion and imports at $2.74 billion. This burgeoning trade relationship underscores the importance of collaborative initiatives like the C-295 manufacturing project.
Future Prospects
With the Vadodara plant now operational, the IAF has already inducted six C-295 aircraft into its 11 Squadron, further modernizing its fleet and replacing the ageing Avro-748 aircraft. Modi’s government views this initiative not just as a step towards self-reliance but also as a significant leap toward becoming a global player in defense manufacturing.
As PM Sánchez concludes his visit with plans to explore Mumbai, both leaders remain committed to enhancing strategic ties, ensuring that collaborations like the C-295 manufacturing initiative continue to flourish.
