India and Spain marked a major moment in defense manufacturing with the grand opening of a new aircraft factory in Vadodara, Gujarat. India’s Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez were at the heart of the event, showing the world a new partnership between Tata Group, one of India’s biggest companies, and Airbus from Spain. Together, they are set to build military planes, specifically the Airbus C-295 transport aircraft, which will be used by India’s armed forces to carry troops and cargo.
This project is a game-changer for India’s defense industry. It’s the first time a private company in India, rather than a government-owned one, will produce military planes on this scale. Until now, defense manufacturing was dominated by a state-run company, Hindustan Aeronautics Limited (HAL), which builds and maintains most Indian military aircraft. Modi, who was once Gujarat’s chief minister before becoming prime minister, emphasized how this new plant is proof that India’s defense industry is evolving. He said that just a decade ago, defense manufacturing in India mostly meant importing from other countries. Now, India is taking big steps towards making its own military equipment and even plans to export it to other countries.
Thousands of people gathered to welcome Sanchez, who was treated to a grand parade, with a flower-decorated carriage carrying him and Modi through the city. This visit marks the first time in 18 years that a Spanish prime minister has come to India. Modi and Sanchez have met before at the G20 summits, but this time, Sanchez aims to deepen Spain’s business ties with India, one of the world’s fastest-growing economies.
The new Tata-Airbus plant has an ambitious goal. By 2026, it aims to roll out the first India-made C-295 aircraft. The plant will build 40 planes in India, while the first 16 planes in this deal will be assembled in Seville, Spain. This project, valued at around $2.5 billion, is part of a contract from India’s Ministry of Defense to replace the Indian Air Force’s aging Avro aircraft.
But the story goes beyond just planes. This partnership is about creating a stronger, more self-reliant India in the field of defense. Modi believes it will lead to the training and development of a new generation of highly skilled engineers and technicians in India. Sanchez, too, sees the collaboration as a boost to India’s aerospace industry, which will drive technology growth and jobs in both countries.
Sanchez will continue his tour in India by heading to Mumbai, where he’ll meet with business leaders, think tanks, and representatives from tourism and Bollywood. Spain is already one of India’s biggest trade partners within the European Union, with two-way trade reaching $8.25 billion last year. This growing economic relationship is not only about defense but also includes tourism, industry, and cinema, which are seen as promising areas for collaboration between the two nations.
As the first-ever private military aircraft manufacturing project in India, this plant represents a bold shift in India’s approach to defense, putting the country on a path to reducing reliance on foreign imports and establishing itself as a global defense manufacturer.
