Airbus, Tata Inaugurate C-295 Assembly Facility in India, First Aircraft in 2026

Airbus and Tata Advanced Systems Limited (TASL) inaugurated a new facility in India’s Vadodara, Gujarat, today to assemble the C-295 military transport aircraft, with plans to roll out the first one by 2026.

India is reportedly expediting plans to acquire an additional 12 C-295MWs, aiming for 78 percent indigenous components as part of its commitment to self-reliance in defence.

In a 2021 agreement valued at INR 21,935 crore (around $300 million), India secured 56 C-295 aircraft, with the initial 16 to be delivered from Airbus's facility in Spain and the remaining 40 to be assembled domestically. The project, led by Tata Advanced Systems Limited (TASL) and Airbus, will begin domestic production with a roll-out scheduled for 2026. The first aircraft built in India will integrate 48% local components, with a target of 75% for subsequent units.

The Defence Acquisition Council (DAC) recently sanctioned the procurement of 15 additional C-295 aircraft in a maritime configuration, with at least 12 planned for domestic production. India aims to increase local content in these aircraft, eventually reaching up to 78%, while further negotiations with Airbus continue.

All C-295 aircraft for the Indian Air Force (IAF) will be equipped with a locally-made Electronic Warfare Suite, designed by Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL). Major components, including the nose fuselage, center fuselage, and wings, will be produced at Tata’s Hyderabad facility, with 13,000 of the 14,000 parts needed for each aircraft expected to be manufactured in India.

The domestic production phase is anticipated to create employment within India’s aerospace and defence sectors, with estimates of 600 direct jobs, 3,000 indirect roles, and 3,000 medium-skilled opportunities.