'Make in India, Make for the World': Why C-295 aircraft factory in Gujarat is a game-changer for defence manufacturing, aerospace sector

NEW DELHI: The inauguration of India's first private military aircraft manufacturing facility, launched by Prime Minister Narendra Modi and his Spanish counterpart Pedro Sánchez in Vadodara on Monday, marks a significant milestone in the nation's defence-manufacturing landscape.

The inauguration is a major shift towards greater self-reliance in defense production, aligning with the Centre's ' Make in India ' initiative. The facility will primarily focus on the assembly of the Airbus C-295 aircraft, which is set to enhance the capabilities of the Indian Air Force (IAF) while fostering indigenous manufacturing.

The facility is expected to become operational by November this year, with the first indigenously manufactured C-295 projected to roll out by September 2026.

Significance of the C-295 deal
The C-295 deal, valued at approximately ₹21,935 crore (around $2.5 billion), involves the procurement of 56 aircraft to replace the aging Avro-748 fleet currently used by the IAF. This acquisition is significant for several reasons:

• Complete aerospace ecosystem: The establishment of the C-295 manufacturing facility is designed to create a complete aerospace ecosystem within India. This includes the entire lifecycle management of the aircraft—from production and assembly to testing, qualification, delivery, and maintenance. Such an integrated approach will ensure that India can not only produce advanced military aircraft but also maintain and upgrade them over time, thereby enhancing operational readiness and sustainability for the Indian Air Force (IAF)
• Modernisation of air transport capabilities: The C-295 is a versatile medium tactical transport aircraft capable of performing various missions, including troop transport, cargo delivery, medical evacuation, and maritime patrol. Its ability to operate from short and unpaved runways makes it particularly suited for diverse operational environments.
• Indigenous production: Under this deal, 16 aircraft will be delivered in a fly-away condition from Spain within 48 months, while the remaining 40 will be manufactured in India by Tata Advanced Systems Limited (TASL) at the new facility in Vadodara. This marks a historic moment as it is the first instance where a complete military aircraft will be manufactured in India by a private entity. The deal includes a 30% offset requirement, which mandates that Airbus invest back into the Indian economy through procurement from local suppliers. This aspect not only boosts local industries but also encourages foreign companies to engage more deeply with 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 involve collaboration with over 125 domestic Micro, Small & Medium Enterprises (MSMEs), thereby strengthening India's aerospace supply chain.

'Make in India, Make for the World'
The C-295 deal is a cornerstone of the 'Make in India' initiative. By facilitating the local production of military aircraft, this project not only enhances India's defense capabilities but also promotes economic growth through job creation and technology transfer.

• Technology transfer: Airbus will provide TASL with critical manufacturing technology for various components of the C-295. This includes indigenous systems such as radar warning receivers and missile approach warning systems developed by Indian firms like Bharat Electronics Limited and Bharat Dynamics Limited.
• Regional maintenance hub: The deal also includes plans for setting up Maintenance, Repair, and Overhaul (MRO) facilities in India, positioning the country as a regional hub for servicing not just its own fleet but potentially those of other nations as well.

During the inauguration ceremony, PM Modi emphasised the importance of the facility in bolstering India's defense capabilities and self-reliance, giving a "boost to our mission of Make in India, Make for the World".

He stated that the establishment of this manufacturing unit represents a new era for India's defense sector, where private participation is crucial for innovation and efficiency.

"The aircraft manufactured at this facility will also be exported in future," he said, while expressing hope that the ecosystem created by the facility will help India manufacture civil aircraft in future 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 way for 'Made in India' civil aircraft," he said.

PM Modi further noted that this initiative aligns with India's broader strategic goals to enhance national security through indigenous capabilities.

He remarked on how this project will not only strengthen the IAF but also contribute significantly to India's status as a global player in aerospace manufacturing.

The PM reiterated that such initiatives are vital for achieving Atmanirbhar Bharat (self-reliant India), underscoring the government's commitment to empowering local industries and fostering technological advancements within the country.
(With inputs from agencies)