Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez jointly inaugurated the Tata Advanced Systems Limited-Airbus facility in Vadodara to manufacture C-295 military aircraft on Monday.
The Vadodara facility is India's first private sector final assembly line for military aircraft.
PM Modi stated that this initiative will not only strengthen the India-Spain ties but also "boost our mission of 'Make in India, Make for the World.'
He added that the aircraft produced at this facility will also be exported in the coming times.
Modi also expressed hope that the ecosystem created by this facility will help India manufacture civil aircraft in future.
"The factory for producing C-295 aircraft reflects the new work culture of new India. This facility showcased the speed at which India is working, right from ideation till execution of any project. The construction of this factory started two years back and today, it is ready for production," he said.
"I have always stressed on avoiding unnecessary delays in planning or execution...I am confident that aircraft manufactured here will be exported to other countries in future," Modi said.
The defence manufacturing ecosystem is touching new heights, he said, adding India could achieve the milestone because of some concrete steps taken by his government 10 years ago.
Stressing that along with right plan, "right partnership" is equally important for the success of any project, he said India's defence manufacturing is a perfect example of the combination.
Various airline firms have placed an order for the purchase of 1,200 new aircraft from around the world over. Now, it is possible that aircraft firms may not be able to take any other country's order, Modi said.
"Thus, in the future, right from design to manufacturing, this factory will play a crucial role in catering to the demands of India and the world," he said.
Vadodara, which is already a strong centre of MSMEs, is on way to be a hub of aviation manufacturing, Modi said.
He also invited Spanish entrepreneurs to set up their units in Vadodara.
The partnership between India and Spain is "vibrant and ever evolving" and people of these two countries are connected through "food, films and football", Modi added.
Sanchez said the first aircraft will be ready to roll out from this final assembly line in 2026.
"This project is also a triumph of PM Modi's vision of turning India into an industrial powerhouse and a magnet for investment and business collaborations...This project will strengthen our industrial ties while underlying our country's commitment as a reliable and strategic partner," he said.
Sanchez said this plant summarises the bilateral relations between Spain and India.
On the occasion, Tata Sons Chairman N Chandrasekaran promised the PM that the first indigenously manufactured aircraft will be rolled out in two years.