India has received the 16th & final Airbus C-295 military transport aircraft from Spain, completing the first phase of a major ₹21,000 crore defence deal. The handover, announced by the Indian Embassy in Spain on Saturday, marks a major milestone in the Indian Air Force’s (IAF) ongoing modernisation push.
Ambassador @DineshKPatnaik, along with senior officials from Indian Air Force, received the last of the 16 Airbus C-295 military transport aircraft at the Airbus Defence and Space assembly line in Seville. The delivery, two months ahead of schedule, marks an important milestone… pic.twitter.com/kKyLBXUuEi
— India in Spain (@IndiainSpain) August 2, 2025
The C-295 will now replace the IAF’s ageing Avro fleet. The remaining 40 aircraft under the contract will be made in India, giving a big push to domestic manufacturing under the ‘Make in India’ initiative.
Tactical Boost for IAF Operations
The C-295 is a medium tactical transport aircraft. Five to ten tons of weight can be carried by it. It can perform a variety of military tasks, including supply delivery, troop mobility, and special missions, thanks to its state-of-the-art avionics and 11-hour endurance. Because it can operate on short, ill-prepared, high-altitude airstrips, it is ideal for India’s varied terrain.
Senior IAF officers and Indian Ambassador to Spain, Dinesh K Patnaik, received the final aircraft at Airbus’s Defence and Space facility in Seville. The embassy stated that the delivery came two months ahead of schedule.
Spain Deal Done, India Now Takes Charge
In September 2021, India and Airbus Defence and Space signed a contract. The arrangement called for Spain to deliver the first 16 aircraft in flyaway condition. Now that the last aircraft has been delivered, Airbus has fulfilled its first commitment.
The next phase will be fully Indian, and Tata Advanced Systems Limited (TASL) will produce the remaining 40 aircraft at its new facility in Vadodara, Gujarat. In October 2023, Prime Minister Narendra Modi and Spanish PM Pedro Sanchez inaugurated this plant, which will serve as India’s first private-sector military aircraft final assembly line.
New Industrial Defence Ecosystem
The Vadodara plant will be used for more than just aircraft assembly. It will host an entire production ecosystem, including manufacturing, testing, integration, and maintenance. This will significantly reduce the requirement for imported goods over time.
Additionally, the initiative attracts significant business and public stakeholders. Several Indian MSMEs, as well as Bharat Electronics Ltd. and Bharat Dynamics Ltd., are important partners. This makes it one of the most important public-private defence projects in recent years.
ALSO READ: “Bring Back Madhuri”: Elephant Transfer Sparks Jio Boycott in Kolhapur
India as a Future Export Hub
Experts believe India’s deeper role in the C-295 programme opens doors for aerospace exports. Once the local line gains maturity, India could supply components—or even full aircraft—to other nations. With Airbus and Tata leading the venture, India may emerge as a reliable partner in the global defence supply chain.
The local assembly line could thus become a regional hub not just for Indian needs, but for future international deals as well. This aligns with India’s aim to increase defence exports to ₹35,000 crore by 2025.
All Eyes on C-295
Now that the shipment from Spain is complete, attention is turning to domestic manufacturing. By 2026, the first C-295 manufactured in India is anticipated. If the project is successful, it will change India’s defence manufacturing sector in addition to modernising the IAF.
