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India and Airbus Inaugurate First Private C-295 Aircraft Production Facility.
On October 28, 2024, India took a step in advancing its aerospace industry with the inauguration of the country’s first private military aircraft production facility, in partnership with Airbus. Located in Vadodara, Gujarat, this plant will produce C-295 military transport aircraft, a model originally manufactured in Spain, to meet the Indian Air Force’s requirements and support regional export efforts. The opening ceremony was attended by Indian Prime Minister Narendra Modi, Spanish President Pedro Sánchez Pérez-Castejón, Tata Sons Chairman N. Chandrasekaran, and Airbus Defence and Space CEO Michael Schoellhorn. The initiative aligns with India's "AatmaNirbhar Bharat" (self-reliant India) program aimed at boosting industrial autonomy.
An Indian Air Force C-295 military transport aircraft in the hangar of the Tata Aerospace complex (Picture source: TATA)
The C-295 is a versatile tactical transport aircraft designed to operate on short, unprepared runways and under challenging weather conditions. It is powered by two Pratt & Whitney PW127G turboprop engines, enabling a top speed of 480 km/h and the ability to carry a variety of payloads, including anti-ship missiles, mines, and depth charges. The aircraft is equipped with a comprehensive self-protection system, featuring radar warning receivers and countermeasures, making it suitable for operations in hostile environments. Its robust design and simplified architecture ensure high reliability and lower operating costs, making it well-suited for demanding military missions.
This inauguration follows a $2.5 billion agreement signed in 2021 to acquire 56 C-295 aircraft to replace the aging AVRO fleet of the Indian Air Force. While 16 of these aircraft will be delivered in a "ready-to-fly" condition from Airbus' assembly facility in Seville, Spain, the remaining 40 will be manufactured and assembled in collaboration with Tata Advanced Systems Limited (TASL) at the Vadodara site. To date, six aircraft have already been delivered to India.
The Vadodara facility marks a milestone for India's defense industry as the first private sector-established Final Assembly Line (FAL) for aircraft in the country. In addition to aircraft assembly, the plant will produce detailed parts, sub-assemblies, and specialized tooling. The facility is set to manufacture over 85% of the structure and final assembly of the 40 aircraft, producing around 13,000 individual components with 21 certified special processes. The supply chain includes 37 Indian suppliers from both the private and public sectors. Component production has already commenced at the main assembly facility in Hyderabad, with initial parts shipped to Vadodara for assembly.
Prime Minister Modi praised the project as a testament to India’s commitment to becoming a global manufacturing player, particularly in defense and aerospace sectors. The initiative is also seen as a tribute to former Tata Sons Chairman Ratan Tata, who played a crucial role in conceptualizing the project over a decade ago. Michael Schoellhorn, CEO of Airbus Defence and Space, stated that the C-295 "Made in India" program demonstrates Airbus' commitment to supporting India's vision of self-reliance in defense manufacturing. The new facility will boost the aerospace industrial ecosystem in India by fostering design, component manufacturing, aircraft assembly, and service capabilities throughout the national value chain.
The first Made in India C-295 aircraft is expected to roll off the assembly line in September 2026, representing a significant milestone for India’s aerospace industry. Production will ramp up to meet the delivery schedule of 40 aircraft to the Indian Air Force by August 2031, as stipulated in the contract. With 56 aircraft on order, India has become the largest customer for the C-295. Additionally, discussions are underway to expand exports to the Indo-Pacific region, where Tata could emerge as a key provider of military aircraft production and maintenance services.
The Tata-Airbus collaboration extends beyond aircraft production. Airbus views India as a strategic hub for expanding its industrial footprint, including aircraft assembly, component manufacturing, engineering design, maintenance support, pilot and technician training, and academic partnerships to develop human capital. Airbus invests over $1 billion annually in India’s supply chain, creating more than 15,000 jobs. The Airbus engineering and digital centers in Bengaluru also contribute to the company’s global commercial and helicopter programs.
With this inauguration, India continues its pursuit of modernizing defense and aerospace capabilities while boosting local industry. The establishment of the Vadodara production line reflects the country’s aspiration to become a regional leader in the defense sector, capable of producing advanced military equipment and fostering international collaborations to drive economic and technological growth.