Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez will jointly inaugurate a C-295 transport aircraft manufacturing facility at Vadodara on Monday, marking a major milestone in defence manufacturing in India. The two leaders are also expected to put their heads together to boost bilateral trade during the visit.

During the inauguration ceremony at the New VIP Road area of Vadodara on Monday, both Prime Ministers will also tour the assembly line and the hangar where the aircraft will be manufactured. A grand roadshow from Vadodara Airport to the facility will precede this event, showcasing vibrant cultural performances and the local spirit of Vadodara. The event is poised to highlight the deep ties between India and Spain, with local students and performers adding to the festive atmosphere along the route.

Following the inauguration, both leaders will proceed to the historic Lakshmi Vilas Palace in the city, where they will hold a bilateral meeting organized by the Ministry of External Affairs. A Memorandum of Understanding (MoU) is expected to be signed, further deepening the strategic ties between India and Spain. The event will conclude with a luncheon at the palace, celebrating the successful collaboration between the two nations.

The Bilateral trade between India and Spain has increased from $6.77 billion in 2021-22 to $7.24 billion in 2023-24, Gujarat state government said in a statement. Spain is India’s sixth-largest trade partner within the European Union, with India’s key exports including mineral fuels, chemical products, machinery, apparel, and iron and steel. Indian companies in IT, pharmaceuticals, and engineering have established a significant presence in Spain, further enhancing cross-border collaboration. Spanish investments in India, valued at over $4.2 billion (April 2000 - June 2024), have played a crucial role in technology transfer and industrial growth.

Spain, in return, has been instrumental in India’s industrial and technological advancements. India imports ships, floating structures, machinery, and beverages from Spain, supporting key sectors like manufacturing and defence. With over 280 Spanish companies operating in India, particularly in states like Gujarat, Maharashtra, and Tamil Nadu, both nations are expected to explore new avenues of collaboration in renewable energy, infrastructure, and defense.

 Over the years, several prominent Spanish companies have established a strong presence in Gujarat, attracted by the state’s pro-business policies and skilled workforce. Notable investments include Grupo Antolin, which established a production facility in Sanand in 2015 to serve leading automobile manufacturers such as Ford and Tata. In the renewable energy sector, Siemens Gamesa and Windar Renovables have established manufacturing plants in Halol, reinforcing Gujarat’s leadership in wind energy production.

Trustin Tape, a joint venture between Miarco, a Valencia-based company specialised in technical tapes and adhesive solutions, and Indian PPM Industries, opened its production centre in Dahej, Gujarat in 2018, becoming the first and only manufacturer of masking tape in India. Likewise, Iberchem, a fragrance manufacturer, has been operating a facility in Changodar, Ahmedabad since 2010. These investments have significantly bolstered Gujarat’s standing as a preferred destination for Spanish companies seeking to expand in India.

Meanwhile, in the newly built aircraft manufacturing facility at Vadodara, Tata Advanced Systems Ltd (TASL) and European aerospace entity Airbus will jointly manufacture and assemble medium-lift tactical C-295 transport aircraft for the Indian Air Force (IAF). TASL will produce 40 fly-away aircraft from its facilities and will subsequently provide MRO support and service for 56 such aircraft procured by IAF, a second statement released by the Gujarat government stated.

The inauguration comes 24 months after PM Modi conducted groundbreaking for the project. In September 2021, India formalised the acquisition of 56 C-295 aircraft to replace the IAF’s legacy AVRO fleet. Under the contractual agreement, Airbus will deliver the first 16 aircraft in ‘fly-away’ condition. The C-295 program is the first aerospace project in the Indian private sector under the ‘Make in India’ initiative. The Tata Advanced Systems facility will manufacture and assemble 40 C-295 transport aircraft, equipped with indigenous Electronic Warfare Suites, for the Indian Air Force (IAF). The first of these Made-in-India aircraft is expected to roll out by September 2026, with the final aircraft set for delivery by August 2031.

The C-295 aircraft, which will be manufactured in Vadodara, is a versatile military transport aircraft with a capacity of 5-10 tonnes, capable of carrying up to 71 troops or 49 to 50 paratroopers. Its tactical design and rear ramp door allow for rapid troop and cargo deployment, making it a crucial asset for the Indian Air Force. This ‘Make in India’ initiative represents a new chapter in India’s aerospace sector, as it marks the first time an aircraft will be manufactured entirely within the Indian private sector.

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