The government said on Thursday that India’s Tata group and Airbus will manufacture the C-295 transport aircraft in the nation, marking the first such production by a domestic private business as part of a push to expand defence manufacturing.
India, one of the world’s largest defence importers, has been attempting to reduce its reliance on foreign industries while increasing domestic manufacturing. Currently, only the state-owned Hindustan Aeronautics Ltd manufactures aircraft, mostly for the military services.
On Sunday, Prime Minister Narendra Modi will lay the groundwork for a new aircraft manufacturing facility in his home state of Gujarat.
“This is the first project of its kind in which a military aircraft will be manufactured in India by a private company,” the Ministry of Defence said in a statement.
The deal, at 219.35 billion rupees ($2.66 billion), entails supplying the Indian Air Force with 56 C-295 MW transport aircraft. Between September of this year and August of 2025, Airbus will deliver 16 aircraft in flyaway condition, while the remaining will be built by the Tata group, including its software division Tata Consultancy Services and Tata Advanced Systems Ltd.
According to the government, the first made-in-India aircraft will be delivered in September 2026.
According to the statement, the project provides a once-in-a-lifetime chance for the Indian private sector to enter the technology-intensive and highly competitive aviation industry, adding that it will reduce import reliance and potentially enhance exports.
The aircraft, which will replace the Air Force’s ageing British Avro fleet, will be outfitted with Bharat Electronics and Bharat Dynamics Ltd technology. Once the 56 aircraft are delivered, Airbus would be allowed to sell them to civil operators and export them to nations approved by the government of India.
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