Lagatar24 Desk
New Delhi: India’s defence landscape marked a historic milestone with the launch of the country’s first private military aircraft manufacturing facility by Prime Minister Narendra Modi and Spain’s Prime Minister Pedro Sánchez in Vadodara on Monday. The facility, which will focus on assembling Airbus C-295 military transport aircraft, is set to enhance the Indian Air Force’s (IAF) capabilities and boost indigenous production, aligning with the Centre’s ‘Make in India’ initiative.
The factory is set to become operational by November this year, with the first indigenously manufactured C-295 expected to roll out by September 2026. This project is poised to transform India’s aerospace manufacturing sector and contribute significantly to the country’s defence production capabilities.
Significance of the C-295 Deal
The ₹21,935 crore (approximately $2.5 billion) C-295 deal involves procuring 56 aircraft to replace the IAF’s aging Avro-748 fleet. The acquisition holds substantial significance:
- Complete Aerospace Ecosystem: The C-295 manufacturing facility is poised to create an integrated aerospace ecosystem within India, including production, assembly, testing, qualification, and maintenance. Such a holistic approach ensures India can produce, maintain, and upgrade these military aircraft, boosting the IAF’s operational readiness.
- Modernisation of Air Transport Capabilities: The C-295 is a versatile medium tactical transport aircraft capable of missions like troop transport, cargo delivery, medical evacuation, and maritime patrol. Its ability to operate from short and unpaved runways makes it particularly effective in varied operational environments.
- Indigenous Production: Of the 56 aircraft, 16 will be delivered in fly-away condition from Spain, while the remaining 40 will be manufactured in India by Tata Advanced Systems Limited (TASL) at the Vadodara facility. This marks the first time a complete military aircraft will be produced in India by a private entity. The deal includes a 30% offset requirement, compelling Airbus to reinvest in the Indian economy, benefiting local suppliers and encouraging deeper collaboration between foreign and Indian businesses.
- Boosting Local Industry: The project is expected to generate around 15,000 high-skilled jobs and an additional 10,000 indirect jobs over the next decade. It will also collaborate with over 125 domestic Micro, Small & Medium Enterprises (MSMEs), strengthening India’s aerospace supply chain.
‘Make in India, Make for the World’
The C-295 deal is central to the ‘Make in India’ initiative, promoting local production and economic growth.
- Technology Transfer: Airbus will provide TASL with critical manufacturing technology for components, including indigenous systems like radar warning receivers and missile approach warning systems, developed by Bharat Electronics Limited and Bharat Dynamics Limited.
- Regional Maintenance Hub: The deal also includes establishing Maintenance, Repair, and Overhaul (MRO) facilities, positioning India as a regional hub for servicing not only its own fleet but potentially that of other nations.
During the inauguration, PM Modi highlighted the significance of this facility in boosting India’s defence capabilities and self-reliance. He called it a “boost to our mission of Make in India, Make for the World.” He expressed hope that the aerospace ecosystem fostered by the facility would pave the way for the future production of civil aircraft as well.
“Today, I am looking beyond just manufacturing transport aircraft. You all must have seen the unprecedented growth and transformation of the country’s aviation sector in the last decade. We are already working to make India a hub of aviation and MRO domain. I am sure this ecosystem will pave the way for ‘Made in India’ civil aircraft,” PM Modi stated.
The Prime Minister reiterated that such initiatives are essential to achieving ‘Atmanirbhar Bharat’ (self-reliant India) and reaffirmed the government’s commitment to empowering local industries and advancing technological development within the country. He underscored that the C-295 project would not only strengthen the IAF but also contribute to India’s status as a global aerospace manufacturing player.
