Prime Minister Narendra Modi, alongside Spanish counterpart Pedro Sanchez, has officially inaugurated the Tata Advanced Systems Limited (TASL) facility for C-295 aircraft manufacturing in Vadodara, Gujarat. This facility marks a significant step for India, being the country’s first private-sector Final Assembly Line (FAL) dedicated to military aircraft.
Defence Minister Rajnath Singh highlighted the occasion, calling it a landmark day for India’s aerospace sector. He stated, “The C-295 project is a monumental achievement for the Indian private sector, as it is the first complete military aircraft to be manufactured in India by a private company.”
The chairman of the Tata conglomerate, Natarajan Chandrasekaran, lauded the launch as a historic day for India’s defence sector and credited the late Ratan Tata, the “titan” of Indian business and former chairman who died earlier this month, for conceiving the idea more than a decade ago.
C-295 programme overview
In 2021, the Indian Ministry of Defence signed a ₹21,935-crore contract with Airbus Defence and Space SA of Spain for 56 C-295 transport aircraft, intended to replace the Indian Air Force’s ageing Avro-748 planes. Of these, 16 aircraft will be delivered fully assembled from Spain, while the remaining 40 will be assembled at the Vadodara facility. The first locally produced aircraft is expected to be ready by September 2026, with all 40 units to be delivered by August 2031.
The Vadodara facility will manage the complete lifecycle of the aircraft, from component manufacturing to assembly and testing, with future plans for maintenance and upgrades. A statement from PM Modi’s office outlined the facility as “a complete ecosystem for manufacture, assembly, testing, qualification, delivery, and lifecycle maintenance.”
Notably, while the aero-engine and avionics will be sourced from other OEMs, the majority of the structural components will be produced domestically. “Of the 14,000 detailed parts used in a C-295, approximately 13,000 will be manufactured in India,” an official source confirmed.
The aircraft is capable of transporting up to 71 soldiers or 50 paratroopers and will be able to access remote locations. It can additionally be used for medical evacuations and aid in disaster response and maritime patrol duties.
Boosting indigenous production and supply chain
The Vadodara plant, a joint venture between TASL and Airbus, aims to enhance India’s indigenous production capabilities, reducing the reliance on foreign military equipment. Airbus has already identified 37 local suppliers, 33 of which are small and medium enterprises (SMEs), to produce various components. The goal is to increase local content from 48% initially to 75% by the delivery of the final aircraft.
Retired Air Marshal Sanjeev Kapoor emphasised the project’s importance, stating, “The program will significantly enhance India’s defence manufacturing ecosystem, with a target of 78% indigenous content by 2030.”
C-295’s advanced features
Designed for tactical operations, the C-295 has a 5-10 tonne transport capacity and aims to replace the Indian Air Force’s Avro-748 aircraft. It features a rear ramp door for rapid deployment of troops and cargo and is capable of operating from semi-prepared surfaces, making it versatile for various missions, including troop transport and paratrooper drops.
Furthermore, all 56 aircraft will come equipped with an indigenous Electronic Warfare suite developed by Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL), further enhancing local defence capabilities.
Strategic shift towards defence self-reliance
The establishment of the C-295 facility represents a strategic shift in India’s defence manufacturing landscape. Historically reliant on imports, particularly from Russia, India’s defence sector has faced challenges due to global geopolitical tensions. PM Modi noted that the Tata-Airbus partnership is a crucial step towards building a self-reliant defence ecosystem, thereby supporting India’s strategic interests and economic growth.
The Indian Air Force has already received six C-295 aircraft from Spain, with the final delivery of these units expected by August 2025. This facility is set to play a pivotal role in strengthening India’s defence capabilities and enhancing indigenous production.
The inauguration of the C-295 aircraft manufacturing facility by PM Modi and PM Sanchez not only signifies a milestone in India’s private-sector defence manufacturing but also paves the way for increased self-reliance in defence. The collaborative efforts of Tata and Airbus aim to significantly boost the local production ecosystem, creating thousands of jobs and reducing dependency on foreign suppliers. As this facility becomes operational, it is poised to redefine India’s position in the global aerospace industry, marking a new chapter in the country’s defence manufacturing journey.
This facility exemplifies India’s ambition to emerge as a leader in defence manufacturing, ensuring that the nation’s defence needs are met with domestic capabilities and expertise.
Spain, the 16th-largest foreign investor in India with more than 280 Spanish companies in the country, sees opportunities including in construction, pharmacy, energy, and the railways industry.
