Spanish Prime Minister Pedro Sanchez inaugurated India’s first private military aircraft factory alongside his Indian counterpart Narendra Modi on his first trip to India on Monday.

The inauguration of the facility comes at a time when India is looking to boost its local manufacturing capabilities in defense and aerospace, while Spain is seeking to increase its investments in the world’s fifth-largest economy.

Sanchez was welcomed to India with a parade, after which he joined Modi inaugurating the Tata Aircraft Complex, the factory that will produce the Airbus C-295 military transport aircraft in partnership with Airbus Spain and will be operated by the Indian Air Force.

The Indian Ministry of Defense signed a 2.5 billion dollar (2.3 billion euro) deal in 2021 for 56 cargo and troop-carrying C295 aircraft from Airbus Defense and Space.

Of these, 16 will be assembled in Seville, Spain – the first deliveries took place last year – the remaining 40 will be produced in India.

The Indian manufacturing unit in Vadodara will complete the first “Made in India” C295 aircraft in 2026.

What did the leaders say about the launch of the military unit?

Sanchez said the project was a triumph of Modi’s vision “to make India an industrial powerhouse and a magnet for investment and business-to-business cooperation.”

“This partnership between Airbus and Tata will contribute to the advancement of the Indian aerospace industry and open new doors for the entry of other European companies,” he added.

“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.

Spain is India’s 16th largest foreign investor, with more than 280 Spanish companies in the country.

The Spanish government is looking for investment opportunities in construction, pharmaceuticals, energy and the railway sector.

mfi/wd (AFP, AP)