Spanish Prime Minister Pedro Sánchez, along with India's Prime Minister Narendra Modi, has inaugurated a new factory for the construction of the military transport aircraft Airbus C295 in Vadodara, Gujarat. This initiative marks a significant step, as it is the first time a complete military aircraft is being manufactured by a private company in India.

Indian Defense Minister Rajinath Singh expressed on platform X the hope that this project would give a "major boost" to the growing aerospace industry of the world's most populous country. The inauguration ceremony was attended by numerous cheering people in Vadodara, highlighting the importance of the project for the regional economy.

The new final assembly line of Tata Advanced Systems will produce the Airbus C295, based on a contract signed in 2021 that provides for the manufacture of a total of 56 aircraft. The first 16 units will be produced in Seville, Spain, of which six have already been delivered to the Indian Air Force. The remaining 40 aircraft are to be delivered by Tata by September 2026, with a contract value of approximately 2.5 billion dollars (2.3 billion euros).

This collaboration is an essential part of India's strategy to strengthen local production and attract foreign investments. The aerospace industry in India has suffered in recent years from a weaker economic environment and strict anti-corruption measures, leading to delays in awarding contracts. With the new plant, Airbus takes an important step to solidify its presence in one of the largest markets worldwide.

Despite these positive developments, Airbus shares reacted with a slight decline of 0.66 percent in XETRA trading, trading at 139.46 euros. This price movement reflects the market reactions to the current investments and the company's long-term prospects in the region.