Modi and Sanchez Inaugurate India's First Private Facility for Military Aircraft Production

Prime Minister Narendra Modi and Spanish President Pedro Sanchez inaugurated a new Tata Advanced System Limited-Airbus facility in Vadodara, Gujarat. This facility will manufacture C-295 military aircraft, marking India's first private sector final assembly line for military planes. Modi highlighted that this initiative would enhance the India-Spain relationship and support the "Make in India, Make for the World" mission.

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The aircraft produced at this facility are expected to be exported in the future. Modi expressed optimism that the ecosystem created by this facility will eventually enable India to manufacture civil aircraft. He noted that the factory reflects India's new work culture, showcasing efficiency from ideation to execution. The construction began two years ago and is now ready for production.

India's Defence Manufacturing Growth

Modi emphasised avoiding unnecessary delays in planning and execution, expressing confidence that aircraft manufactured here will be exported globally. He stated that India's defence manufacturing ecosystem is reaching new heights due to strategic steps taken by his government a decade ago. At that time, India was primarily focused on imports, but new targets were set, leading to today's achievements.

He stressed the importance of having the right plan and partnership for any project's success, citing India's defence manufacturing as a prime example. A vibrant defence ecosystem has emerged in India due to several initiatives, including private sector involvement, public sector efficiency improvements, and the development of defence corridors in Uttar Pradesh and Tamil Nadu.

Economic Impact and Future Prospects

In recent years, nearly 1,000 defence startups have been established in India. Over the past decade, India's defence exports have increased 30-fold, with equipment now being exported to over 100 countries. The new factory is expected to create thousands of jobs. Modi mentioned that around 18,000 parts of the aircraft will be produced by micro and small industries across the country.

Modi also highlighted India's aviation sector growth over the last decade. He expressed ambitions for India to become a hub for aviation and maintenance repair operations (MRO). He believes this ecosystem will lead to Made in India civil aircraft. Various airlines have ordered 1,200 new aircraft globally, potentially limiting other countries' orders.

International Collaboration and Investment

Vadodara is poised to become an aviation manufacturing hub due to its strong MSME presence. Modi invited Spanish entrepreneurs to establish units there. He noted that India and Spain share vibrant ties through food, films, and football. Sanchez stated that the first aircraft from this assembly line will be ready by 2026.

Sanchez praised PM Modi's vision of transforming India into an industrial powerhouse and investment magnet. He said this project strengthens industrial ties while highlighting Spain's commitment as a strategic partner. Sanchez added that foreign direct investment should contribute positively to the host country's future.

Tata Sons Chairman N Chandrasekaran assured Modi that the first indigenously manufactured aircraft would be rolled out within two years. The project was initially conceived in 2012 by Ratan Tata, who passed away earlier this month. Chandrasekaran described it as a historic moment for both Tata Group and India.

In September 2021, India signed a deal worth nearly Rs 21,000 crore with Airbus Defence and Space for 56 C-295 transport aircraft to replace ageing Avro-748 planes in the Indian Air Force. Under this agreement, Airbus will deliver the first 16 aircraft from its Seville assembly line within four years. The remaining 40 will be manufactured by Tata Advanced Systems in India as part of their industrial partnership.