On October 28, 2024, Indian Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez inaugurated India's first private military aircraft plant in Vadodara, Gujarat. This facility will produce Airbus C-295 transport military aircraft, marking a significant step in India's defense and aerospace manufacturing ambitions.
The inauguration was celebrated with an open-top parade featuring both leaders, who were welcomed by large crowds. This visit marks the first by a Spanish premier to India in 18 years, highlighting the strengthening ties between the two nations.
India's Ministry of Defence had previously agreed to a $2.5 billion deal for 56 C-295 aircraft, with 16 to be assembled in Spain and 40 to be manufactured in India. The Vadodara plant is expected to complete its first 'Made in India' C-295 aircraft by 2026.
The C-295 aircraft can transport up to 71 soldiers or 50 paratroopers and is designed for various functions, including medical evacuations and disaster response. Modi emphasized that this factory would enhance India-Spain relations and support India's 'Make in India' initiative.
Sanchez noted that this project signifies a new chapter in India's defense industry and reflects Spain's commitment as a strategic partner. The Tata conglomerate's chairman, Natarajan Chandrasekaran, described the launch as historic for India's defense sector.
Spain is currently the 16th-largest foreign investor in India, with over 280 Spanish companies operating in various sectors. Trade between India and Spain reached $9.9 billion in 2023, with India exporting $7.17 billion and importing $2.74 billion.
Following the inauguration, Sanchez is scheduled to visit Mumbai to engage with trade and industry leaders and explore opportunities for collaboration in the entertainment sector.