PM Modi, Spanish Counterpart Pedro Sanchez Inaugurate Tata-Airbus Defence Manufacturing Hub

Vadodara: Indian Prime Minister Narendra Modi, alongside his Spanish counterpart Pedro Sanchez, inaugurated India’s inaugural private military aircraft facility on Monday. This move marks a significant step in New Delhi’s drive to expand domestic production within its defence and aerospace sectors.

Sanchez received a warm welcome with a roadshow in Vadodara city, Gujarat state, where crowds of people expressed their enthusiasm with cheers and banners.

Following this, the leaders unveiled the Tata Aircraft Complex, a production centre set to manufacture the Airbus C-295 military transport aircraft. This initiative is a joint venture with Airbus Spain and will serve the Indian Air Force.

Sanchez lauded the project as a testament to Modi’s aspiration to transform India into an industrial stronghold, attracting investments and fostering business collaborations.

He further stated, “The collaboration between Airbus and Tata will propel the advancement of the Indian aerospace sector and pave the way for more European enterprises to engage.”

Natarajan Chandrasekaran, the chairman of the Tata group, celebrated the occasion as a landmark moment for India’s defence industry. He attributed the concept to the late Ratan Tata, the visionary industrialist and past chairman, who passed away earlier this month, noting that the idea was originally conceived over a decade ago.

Under a \$2.5 billion agreement signed in 2021, Airbus is set to deliver the first 16 aircraft from its final assembly line in Seville, Spain, with six already delivered to the Indian Air Force. Tata Advanced Systems Ltd is slated to manufacture 40 aircraft at the Vadodara plant, with the first Indian-made C-295 expected in 2026. The aircraft, capable of transporting up to 71 troops or 50 paratroopers, will enhance access to remote areas and serve in medical evacuations, disaster response, and maritime patrol duties.

Since assuming office in 2014, Modi has committed to transforming India into a global manufacturing hub, spanning infrastructure, pharmaceuticals, and defence. The government has been keen on expanding the private defence manufacturing sector, traditionally dominated by state-run entities, and has relaxed foreign direct investment policies to attract companies to India.

This visit is the first by a Spanish leader to India in 18 years. Modi and Sanchez, who have met at global summits in 2018 and 2021, will use this occasion to discuss bilateral relations and also engage with Indian Foreign Minister Subrahmanyam Jaishankar.

Sanchez’s itinerary includes a trip to Mumbai, the financial nucleus of India and the heart of Bollywood, to meet with business leaders and explore the film studios, aiming to foster collaboration between the Indian and Spanish entertainment sectors.

As of 2023, bilateral trade approached \$10 billion. The Indian Foreign Ministry notes that over 200 Spanish firms are active in India, with about 80 Indian companies operating in Spain.

The leaders are anticipated to ink deals to enhance cooperation in areas such as trade.