The first “Make in India” C295 transport aircraft is set to roll out of the newly built Vadodara facility, inaugurated by Prime Minister Narendra Modi and Spain’s Prime Minister Pedro Sanchez on Monday, in September 2026.
Except for the aircraft engine and some parts, over 13,000 parts of the medium-lift tactical C-295 transport aircraft for the Indian Air Force (IAF) will be manufactured indigenously in India. “This factory will strengthen India-Spain relations and will also drive the Make-in-India Make-for-the-world initiative… This factory also reflects the new work culture of New India. It shows the speed at which India is working. Just two years ago the construction of the factory had started and now it is ready for aircraft production,” PM Modi said while inaugurating the facility with his Spanish counterpart.
On his maiden visit to India, Sanchez said, “40 aircraft will be assembled here at this facility in Vadodara. We will also manufacture all sections and 13,000 of a total of 40,000 detailed parts in India.” “This foundation between Tata and Airbus will contribute to the progress of the Indian aerospace industry and will open new doors for the arrival of other European companies… Spain will also fulfill its commitment of technology transfer,” he said, adding that the project was a “new chapter” for Airbus in the Indian defence industry. He said that the project between Airbus and Tata Advanced Systems Ltd (TASL) would create a “spill-over effect” for India’s MSMEs.
“The project summaries the excellent state of bilateral relations between Spain and India. This relationship has grown over the last few years and today we are taking another strategic step,” the Spanish PM said.
India has become the largest customer for the C295, acquiring 56 aircraft. The C295 ‘Make in India’ programme will produce more than 85 per cent of the structural and final assembly of 40 aircraft and manufacture 13,000 detail parts in India. For this, 21 special processes have been certified, and 37 India-based suppliers from the private and public sectors have been onboarded.
The inauguration comes three years after the Indian Air Force (IAF) formalised the acquisition of 56 Airbus C295 aircraft to replace its legacy AVRO fleet. As per the contract, 40 units will be manufactured and assembled in partnership with TASL at this FAL, while 16 will be delivered to the IAF in ‘fly-away’ condition from Airbus’ final assembly line in Seville, Spain. To date, six aircraft have already been delivered.
The production of components of the C295 aircraft has already started in the Main Component Assembly (MCA) facility in Hyderabad. The parts for the first C295 aircraft to be made in India have been shipped to the Final Assembly Line (FAL) in Vadodara, where the aircraft will be assembled and then delivered to the IAF. The FAL will integrate the manufacturing of detailed parts and related tooling, sub-assemblies, major component assemblies, tools, jigs, and testers.
Earlier, both Prime Ministers participated in a roadshow from Vadodara airport to the new aircraft manufacturing facility. Hoardings with “Bienvenido” inscribed on them lined both sides of the roads leading from the Vadodara airport to the new aircraft manufacturing facility, welcoming both the PM of Spain and PM Modi.
While speaking at the event, N Chandrasekaran, Chairman of Tata Sons, said that the C295 aircraft project was “originally conceived” in 2012 by the then-chairman of Tata Sons, Ratan Tata. “Ratan Tataji led the whole concept of building a relationship with Airbus and created this partnership. This project will propel India into the next level of advanced manufacturing. It will help build a diverse and sophisticated skills ecosystem as well as a strong supplier base,” said Chandrasekharan.
“I must commit to our Prime Minister that exactly two years from now, we will deliver the indigenously built aircraft… Except for the (aircraft) engine everything else will be locally produced,” he said, adding that 200 Tata Group engineers are in Spain undergoing training with regard to the project.
During his speech, PM Modi also said that India’s defence exports to about 100 countries have risen 30 times in the last 10 years. He said there are currently 1,000 defence startups in India.
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