India jumped 79 places in five years in the World Bank’s ‘ease of doing business’ rankings, leading to foreign investment in the country’s indigenous defence sector.
Prime Minister (PM) Narendra Modi on Sunday laid the foundation stone for the new C295 plant in Vadodara, Gujarat. At the event, he spoke about India’s prowess as a defence hub with the aim of increasing defence manufacturing output to more than $25 billion in the next two years.
The new plant in Vadodara is being set with the aim to produce the Indian Air Force (IAF's) replacement for Avro HS748 fleet. The same will be replaced by the Tata-Airbus collaboration that will manufacture the C295MW. Signed between Tata Advanced Systems Ltd (TASL) and Airbus Defence and Space, the deal is worth around $22,000 crore.
It is the first time that the transport aircraft is being manufactured outside Europe, Defence Secretary Ajay Kumar said. As per reports, 96 per cent of the aircraft’s components will be indigenous, the highest ever for planes produced in India. All this is a part of the ‘Make in India’ and ‘Atmanirbhar Bharat’ (self-reliant India) initiatives outlined by PM Modi.
The PM believes that India is on its way to become a manufacturer of transport aircraft, as well as when it produces larger passenger planes for the world market. PM Modi stated that the C295MW will strengthen the Indian Armed Forces as well as create a “new ecosystem for aircraft manufacturing”. The Airbus CCO said that the company is aiming to deliver one aircraft per week on average for the next decade.
On ‘Make in India’, Christian Scherer, Airbus’ Chief Commercial Officer (CCO) told media that it is the PM’s vision of ‘Make in India’ that has encouraged Airbus to rethink the manner of conducting business in the country in the form of the C295MW assembly line.
India opening up its business industry to foreign companies has enhanced the country’s ease of doing business, with India moving from the 142nd rank to the 63rd in five years in the World Bank’s list.
Adding to what Scherer mentioned, Maruti Suzuki’s Managing Director Hisashi Takeuchi said that India’s global stature is rising with immense potential as the country is becoming a smart choice for foreign firms to enter.
India is also moving fast with foreign firms setting up production facilities in the country. As per previous reports, South Africa’s Paramount Group has already partnered with the Kalyani Group to expand its India operations and produce the M4 armoured vehicle. Russia’s Rosoboronexport has also signed a deal at DefExpo 2022 to manufacture its AK-203 assault rifle in Uttar Pradesh. Additionally, Sweden’s Saab Defence will produce its Carl-Gustaf M4 weapon system in India.