Prime Minister Modi, Defence Minister Rajnath Singh at TATA factory in Gujarat

India's first indigenously manufactured C-295 military transport aircraft is set to roll out from its Vadodara factory before September 2026, External Affairs Minister S Jaishankar announced during a high-level meeting in New Delhi.

The milestone update came on 21 January 2026, as EAM Jaishankar hosted his Spanish counterpart, Foreign Minister José Manuel Albares, to discuss deepening bilateral ties across defence, trade, and culture.

This development underscores New Delhi's push for resilient manufacturing under the 'Make in India' initiative, with the C-295 project symbolising robust India-Spain defence industrial collaboration.

The Indian Air Force (IAF) secured a ₹21,935 crore deal with Airbus Defence and Space for 56 C-295 aircraft, of which 40 will be assembled domestically at the final assembly line inaugurated by Prime Minister Narendra Modi and Spanish Premier Pedro Sánchez in October 2024.

Jaishankar highlighted the project's progress as evidence of India's commitment to building self-reliant aerospace capabilities, amid growing global interest in indigenous defence production.

Beyond defence, the ministers addressed shared global challenges, with Mr Jaishankar stressing the need for nations to unite against profound shifts in the world order.

He called for "zero tolerance" towards terrorism, noting that both India and Spain have suffered from such threats, urging unwavering international resolve.

The discussions also covered expanding India-EU relations, with Spain expressing support for deeper ties and joining India's Indo-Pacific Oceans Initiative (IPOI).

Trade emerged as a key pillar, with bilateral goods trade surpassing $8 billion in recent years, positioning Spain as a vital EU partner for India.

Spanish firms have gained a strong foothold in India, particularly in infrastructure, renewable energy, urban mobility, engineering, and water management.

Conversely, Indian companies are expanding in Spain through IT, pharmaceuticals, and automotive components, with considerable scope for further business synergy.

Jaishankar praised these trends as reflective of a maturing economic partnership, set against the backdrop of 2026 marking 70 years of diplomatic relations between the two nations.

Cultural exchanges enrich this bond, evident in the popularity of yoga and Ayurveda in Spain, alongside rising interest in Spanish language and culture in India. Tourism is burgeoning as another vital link, fostering people-to-people connections rooted in shared democratic values, multilateralism, and a rules-based order.

To celebrate the anniversary, the ministers unveiled a specially designed India-Spain logo for the 2026 "Dual Year" of Culture, Tourism, and Artificial Intelligence, chosen from over 1,900 competition entries.

Jaishankar also previewed India's hosting of the AI Impact Summit next month, emphasising a human-centric, inclusive approach to AI that aligns closely with Europe's ethical framework.

This convergence on responsible AI use highlights potential for joint innovation, complementing the defence and trade momentum.

The Vadodara facility, a joint venture between TATA Advanced Systems and Airbus, represents a leap in India's tactical transport fleet modernisation, replacing ageing Avro-748s.

With the first 'Made in India' C-295 on track for rollout, the project not only bolsters IAF operational readiness but also positions India as a hub for medium transport aircraft manufacturing.

Spain's role as a strategic partner in this endeavour extends to technology transfer and skill development, aligning with India's Atmanirbhar (self-reliant) defence vision. As geopolitical tensions rise, such collaborations fortify supply chain resilience, reducing dependence on traditional suppliers.

The meeting signals an upward trajectory in India-Spain relations, blending strategic defence imperatives with economic and cultural vitality.

Agencies