The Tata Aircraft Complex in the state of Gujarat will produce Airbus C-295 military transport aircraft in collaboration with Airbus Spain.

Indian Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez have inaugurated India’s first private military aircraft factory, boosting New Delhi’s ambitions to grow local manufacturing in the defense and aerospace industries.

Sanchez was welcomed to India on Monday with a flower-filled, open-topped parade alongside Modi, as Madrid looks to boost investment in the world’s fifth-largest economy.

The duo waved to the crowd in a vehicle covered in flowers as they headed to the inauguration of the aircraft factory, a partnership between Tata Advanced Systems and Airbus, in the city of Vadodara in Modi’s home state of Gujarat, where hundreds of people cheered and waved banners .

It is the first visit by a Spanish Prime Minister to India in 18 years. Modi visited Spain in 2017 and held talks with Sanchez during the G20 summits in 2018 and 2021.

India’s Defense Ministry has agreed to a deal worth $2.5 billion for 56 cargo and troop-carrying C-295 aircraft from Airbus Defense and Space in 2021. While 16 will be assembled in Seville, Spain – of which first deliveries took place last year – there are 40, the rest will be built in India.

The Indian factory in Vadodara will complete the first “Made in India” C-295 aircraft in 2026.

The aircraft can carry up to 71 soldiers or 50 paratroopers and access remote locations. It can additionally be used for medical evacuations and assistance in disaster relief and maritime patrol duties.

“This factory will not only strengthen India-Spain relations but also the mission of ‘Make in India and Made for the World’,” Modi said at the inauguration. “It also strengthens India’s position as a trusted partner in global aerospace manufacturing.”

Sanchez said Airbus has opened a new chapter in the Indian defense and aerospace industry.

“This project strengthens our industrial ties while underscoring our country’s deep commitment as a reliable and strategic partner,” he said in English. “It also shows the capabilities of the Spanish defense industry.”

Tata conglomerate chairman Natarajan Chandrasekaran hailed the launch as a historic day for India’s defense sector and praised the late Ratan Tata, the ‘titan’ of Indian business and former chairman who died earlier this month, for making the idea more than just thought up. a decade ago.

Spain, the 16th largest foreign investor in India with more than 280 Spanish companies in the country, sees opportunities in the construction, pharmaceutical, energy and railway sectors, among others.

India says trade between the two countries is “robust and growing,” reaching a total of $9.9 billion in 2023, with India exporting $7.17 billion and importing $2.74 billion.

On Tuesday, Sanchez will travel to Mumbai, India’s financial capital and home of Bollywood, to meet business and industry leaders, and will also visit film studios to promote cooperation between the Indian and Spanish entertainment industries.