Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez visit the TATA Aircraft Complex after its inauguration, in Vadodara, Gujarat, Monday, October 28, 2024.
Credit: PTI Photo
The inauguration of the Tata Advanced Systems Ltd (TASL) aircraft manufacturing facility in Vadodara last week is a landmark in India’s defence industry because it is the country’s first major private defence manufacturing venture. Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez jointly inaugurated the facility, where the Airbus C-295 aircraft will be manufactured. The C-295 deal for supply of 56 aircraft was signed in 2021.
It was agreed that 16 aircraft would be delivered directly by Airbus from Spain, and the remaining 40 would be manufactured at the Tata facility. India’s defence production sector is monopolised by the public sector and the private sector has so far played only a small role. The need to increase private sector participation in defence manufacturing has been discussed for a long time. Though some steps have been taken in the past, the TASL project is the first major venture in that direction.
The plant is conceived as an MRO (manufacturing, repair and overhaul) hub. After the IAF (Indian Air Force) order is delivered, the unit will continue as a production, export and service facility for Airbus aircraft. The avionics and engines are sourced by Airbus, but a large number of parts are proposed to be made in India. A number of micro, small and medium enterprises (MSME) will be involved in the production.
According to reports, the aircraft will incorporate about 48 per cent of local content initially, and this will go up to 75 per cent in due course. Reports have also indicated that 29 MSMEs have been identified for supply of parts. About 14,000 components go into the making of an aircraft. The TASL’s Hyderabad facility has started producing some of them. Electronic systems designed and produced by the Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd will be integrated into the aircraft.
While enhancement of the role of the private industry is welcome, there is also a need to increase self-reliance in the sector. India is the largest importer of defence equipment in the world. That involves spending of large amounts of foreign exchange, and more importantly, it renders the country vulnerable from the national security perspective.
Defence needs are expected to increase in the coming years, in view of the tensions in the neighbourhood and the country’s rising profile on the global stage. A country of India’s size and ambitions cannot be dependent on foreign arms and equipment for its defence. Indigenous development and production of defence systems should receive more serious attention. Projects in most areas have not seen much success even over decades. It is in the defence sector that the idea of Make in India should be most seriously pursued.