The assembly plant, jointly inaugurated in October 2024 by Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez, represents a significant pillar of India’s domestic defence manufacturing ambitions under the “Made in India” initiative. Earlier this year in January, External Affairs Minister S. Jaishankar had also highlighted the growing progress of the programme.
India signed a $3.5 billion agreement with the European aerospace consortium Airbus in August 2021 for the acquisition of 56 C-295 transport aircraft to replace the Indian Air Force’s aging fleet of HS-748 Avro aircraft. Under the agreement, 16 aircraft are being delivered in fly-away condition, while the remaining 40 are to be assembled in India. Deliveries of the India-assembled aircraft are expected to continue until 2031.
The programme has substantially expanded India’s defence industrial ecosystem. A total of 13,400 aircraft parts and 4,600 sub-assemblies are now being sourced domestically. More than 96 percent of the work previously carried out on an airframe in Spain is now being undertaken in India, marking a major shift in indigenous aerospace manufacturing capability.
India is also establishing a dedicated Maintenance, Repair and Overhaul hub for the C-295 fleet within the country, aimed not only at servicing domestic aircraft but also supporting operators across the wider region. Ten of the aircraft’s 36 global operators are located in India’s surrounding region and are expected to benefit from the facility.
Since the original order for 56 aircraft, the Indian government has approved an additional procurement of 15 aircraft valued at approximately .1 billion. Of these, nine aircraft will be delivered to the Indian Navy under the Medium-Range Maritime Reconnaissance Aircraft programme, where they will operate alongside the P-8I maritime patrol aircraft. The remaining six aircraft are designated for the Indian Coast Guard under the Multi-Mission Maritime Aircraft programme.
The Indian Air Force is also expected to place further orders for the C-295 as its aging Antonov An-32 transport fleet approaches retirement. The An-32 has served as the backbone of the Indian Air Force’s transport operations since its induction in the 1980s, operating across diverse terrains ranging from the Andaman and Nicobar Islands to the high-altitude Himalayan region.
The C-295 is viewed as a strong replacement candidate for the An-32 fleet due to its superior payload capacity. The aircraft can transport up to 9,000 kilograms of payload compared to the An-32’s 6,700-kilogram capacity. Both aircraft are capable of carrying 24 stretchers and a similar number of paratroopers, maintaining operational flexibility for military logistics and humanitarian missions.
The Indian Air Force is currently pursuing a requirement for between 40 and 80 aircraft under the Medium Transport Aircraft programme. The requirement specifies aircraft capable of carrying a minimum payload of 20 tonnes. Defence observers expect that additional C-295 acquisitions could eventually replace a substantial portion of the remaining An-32 fleet.
The nearing rollout of the first India-assembled C-295 marks a critical moment for India’s defence manufacturing ambitions, reflecting a growing domestic aerospace capability, expanding military modernization plans, and an increasing emphasis on self-reliance in strategic defence production.
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