New ecosystem. PM lays foundation stone for C-295 aircraft facility at Vadodara

India’s aviation sector is poised for robust growth in the coming decade as the country will soon be among the top three nations with the world’s largest air traffic, Prime Minister Narendra Modi said at the ground-breaking ceremony for the Tata-Airbus C-295 transport aircraft manufacturing facility at Vadodara on Sunday.

Exuding confidence in the growing defence aerospace manufacturing in the country, Modi said, “I can foresee a day when the world’s big passenger planes will also be made in India. Today, as we lay the foundation stone for this facility, it will transform the defence aerospace sector of India,” said Modi at the gathering on the outskirts of Vadodara. This is the first time India’s defence aerospace sector has witnessed such a quantum of investment being made.

European aviation major Airbus and Tata Group, under a tie-up, will manufacture C-295 transport aircraft for the Indian Air Force (IAF) in Vadodara, the first instance for a private entity to manufacture defence aircraft in India. The project involves an investment of around ₹22,000 crore and promises to generate employment for 6,000.

‘New ecosystem’

The project, Modi said, will help develop a new ecosystem for aircraft manufacturing in India. “Vadodara has been known for education and culture, and now it will stand tall in front of the world with a new identity as an aviation sector hub,” he said, adding that the facility will also be used for exports of the aircraft, thereby strengthening the concept of “Make in India and Make for the globe.”

The ground-breaking ceremony was attended by Raksha Mantri Rajnath Singh, Union Civil Aviation Minister Jyotiraditya Scindia, Gujarat Governor Acharya Devvratt and Gujarat Chief Minister Bhupendra Patel, besides the top company representatives from Tata Group and Airbus.

Modi stated that India is among the fastest growing aviation markets in the world. “We will soon be among the top three countries with maximum air traffic. It is estimated that in the next 10-15 years, India will need nearly 2,000 passenger and cargo aircraft. This indicates the extent of growth opportunities in this sector. And today’s development is an important step in that direction,” he said.

Giving a message to the global community from the platform of defence aerospace manufacturing, Modi stated that India has provided a golden opportunity to the world amidst the covid pandemic, the war crisis and supply chain disruptions. In spite of all these crises, the growth momentum of India’s manufacturing sector remained unaffected. The operating conditions in India are constantly improving, and the country now focuses on cost competitiveness and quality.

Foreign investment

Foreign investment in aerospace in the past eight years has reached $3 billion, which is five times more than the investments received in the 14 years between 2000 and 2014.

“The big reason for this success is a change in our mindset to allow the capabilities of the private sector to flourish. Today’s new India is working with a new mindset and a new work culture. We have done away with a system of temporary decisions,” Modi said, adding that defence and aerospace will emerge as two important pillars of India’s Atmanirbhar Bharat Mission.