India’s self-dependent dream in the military aircraft manufacturing industry got a boost recently when a new plant was inaugurated.

This project is an initiative of the current Prime Minister of India, Mr. Narendra Modi, and the Spanish counterpart, Pedro Sánchez, in partnership between India and the largest aerospace company in Europe, Airbus. This decision not only caters to India’s ‘Make in India’ policy but also sets a standard with regard to its growing expertise in the defence manufacturing industry. Here is more about this groundbreaking achievement and India’s defense market outlook.

What's going on with India’s new aircraft plant?

A strategic manufacturing project is an integrated, modern manufacturing complex in Vadodara, Gujarat. It will start manufacturing C-295 military transport aircraft, which are used for transporting bulk cargo as well as cargo sensitive to its orientation. While a certain number of these aircraft will be flown directly from the Airbus final assembly line to the IAF, assembly lines in India will build the remainder of these aircraft over the next decade. This pattern will assist in the provision of India’s nearby safeguard necessities as well as, at the same time, growing Indian manufacturing improvement. More to the point, Airbus seeks to develop a production line all the way from component manufacturing through final assembly and testing.

Why is this plant so important?

The defence sector has always been largely import-dependent, and up to 70% of Indian defence requirements are met through import. This has led India to set up such a facility in a bid to cut on such dependency in its defence manufacturing. Such a transformation is consistent with Modi’s Aatmanirbhar Bharat (Self-Reliant India) planning, whereby Indian industry across industries will be promoted, particularly in defence production. This plant is a big leap forward for India to be able to supply many of its military needs domestically and eventually become a contender for exporter of defence equipment later on.

Besides adding a superpower to our defence, the plant must go on to produce thousands of engineers, technicians, and skilled labourers in India. This creation of employment openings is expected to impact the economy and give a facelift to the manufacturing industry.

Besides, the partnership with Airbus is said to raise India’s technical competencies; the plant is expected to generate over 15,000 high-level positions in one way or another through the value chain. This project could eventually develop India into one big defence manufacturing site, thus the notion of exportation would be eminent.

As India has been increasing defence cooperation with different countries, this partnership with the Spanish country is a cornerstone. This has enhanced the concern of the European sovereign states with the defence market in India and, at the same time, represents India as a promising actor in the global defence market. The deal also opens up greater opportunities for hi-tech joint business between India and Spain, especially in areas such as renewable energy, infrastructure, and IT.

This plant is one such effort, although India is still in the process of becoming an integrated defence manufacturing hub. The kind of collaboration that is currently being witnessed is a new start, and the Indian firm will need more such affiliations to achieve complete vertical integration. If successful, India could transform into one of the frontline exporters of military hardware and hence create a long-term impact on its economy and raise its global standing.

The coming of India’s first private military aircraft manufacturing plant is not only a business opportunity but also a hub and speaker of India’s ambition in Defence Make in India.

This is coupled with the Spain partnership for the manufacturing and delivery of fighter aircraft to create not only aircraft but a new age of manufacturing prowess and employment opportunities for India. I am confident that as India continues to build its defence capacity, the whole world will observe how this courageous program will transform the position of India in global defence production.