The delivery of the final C-295 transport aircraft from Spain marks a pivotal inflection point for India’s indigenous aerospace ambitions, especially as the responsibility for building the remaining 40 aircraft shifts to TATA Advanced Systems Limited (TASL) in Vadodara.

This transition is not just a handover of assembly, but a significant leap in India’s strategic goal of consolidating its aerospace manufacturing and self-reliance.

The C-295 program, stemming from a contract between India and Airbus Defence & Space in 2021, involves 56 tactical transport aircraft for the Indian Air Force (IAF). The first 16, now delivered from Spain, already contain approximately 48% indigenous content in areas such as electronic and warfare systems.

More notably, the remaining 40 aircraft will incorporate up to 75% locally sourced components and assemblies—an unprecedented level for a transport aircraft in Indian aerospace. In fact, of the roughly 14,000 detailed parts needed for each C-295, about 13,000 are planned to be manufactured in India, with a robust supply chain of 37 companies (33 of which are MSMEs) underpinning this ecosystem. Bharat Electronics Limited and Bharat Dynamics Limited provide the indigenously developed electronic warfare suites for all 56 aircraft, further deepening domestic capability.

The industrial impact of this transfer to TATA cannot be overstated. The Vadodara facility is the first private-sector final assembly line for military aircraft in India. There is a clear roadmap to shift labour and manufacturing skills from Spain to India, with 96% of man-hours needed for the full assembly process eventually taking place on Indian soil.

This goes far beyond so-called "screwdriver assembly"—the criticism often levelled at previous attempts—by embedding high-value tasks, including complex sub-assembly and even certain systems integration, into India’s industrial base. As knowledge transfer deepens, indigenous content is expected to increase further, fuelling a virtuous cycle for the wider defence and civilian aerospace sector.

This project is not just about aircraft delivery but about building an ecosystem. It is enabling MSMEs to gain aerospace-grade certification, sophistication, and global competitiveness, and offering Indian suppliers the opportunity to be part of larger supply chains for other international aerospace leaders such as Boeing, Lockheed Martin, and Airbus. The government is leveraging this process to create a resilient, world-class framework for aerospace manufacturing, which—if built upon—could rival established hubs in Europe and North America.

Looking further ahead, the TATA-Airbus partnership positions India for even greater ambitions, particularly the much-discussed replacement for the IAF’s ageing AN-32 fleet. While the C-295 was originally slated as an Avro replacement, there is a growing chorus within the air force and among policymakers for TATA to play a central role in the design, manufacture, and final assembly of a future Medium Transport Aircraft (MTA), possibly in partnership with global stakeholders. 

he IAF’s AN-32s, which have been the lifeline for forward deployments in Ladakh and the Northeast, are slated for retirement beginning in 2032. By then, having a proven, mature, and indigenous manufacturing line—backed by a robust supply chain—would uniquely qualify TATA (and India) to not just assemble, but potentially design and develop a next-generation replacement platform with far higher indigenous content and deeper “design-to-realisation” capabilities. This would represent a true leap beyond screwdriver assembly and towards full-spectrum aerospace leadership.

In summary, the completion of Spain’s C-295 deliveries and the transition to TATA’s production line is both an operational and symbolic milestone for India. The real test now is whether TATA and its partners can deliver on the promise of deep indigenous content, build sustainable technological depth, and use this momentum to deliver even more ambitious projects—such as taking the lead on an Indian-designed AN-32 replacement.

This is a unique window to consolidate aerospace competence not simply by fulfilling an offset requirement, but by leveraging the C-295 project as a cornerstone for India’s emergence as an aerospace power.

IDN (With Agency Inputs)