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New Delhi/Vadodara: Prime Minister Narendra Modi and Spanish PM Pedro Sanchez signed several memorandums of understanding during their bilateral meeting in Vadodara, Gujarat on Monday.

During bilateral talks held at the iconic Laxmi Vilas Palace in Vadodara, both leaders also discussed the situation in Ukraine and in West Asia, said Tanmaya Lal, secretary (west) in the external affairs ministry.

India and Spain, during the bilateral talks, signed agreements on cooperation in key sectors like infrastructure, railways as well as culture and tourism, he said.

An MoU on rail transport was signed for cooperation in planning, design, development, commissioning and operation of infrastructure, stations, railways facilities and equipment of long-distance passenger and freight networks as well as urban and regional railway systems, an official release said.

“During the meeting, it was agreed that 2026 will be celebrated as “India-Spain Year of Culture, Tourism and AI”. Moreover, a cultural exchange programme for 2024-28 was also signed to promote bilateral exchanges in music, dance, theatre, literature, museums and festivals,” the release said.

It has been decided Spain will open a consulate in Bengaluru, the release said, adding India’s consulate general in Barcelona was operationalised in August 2024. The Spanish delegation included two ministers and 15 CEOs of leading companies. The bilateral talks were followed by a banquet lunch at the palace hotel hosted by Modi.

The two leaders jointly inaugurated the Tata Aircraft Complex for manufacturing of C-295 aircraft at the Tata Advanced Systems Ltd (TASL) campus in Vadodara.

The facility is the first private sector final assembly line for military aircraft in the country. The first “Made-in-India” C-295 is expected to be rolled out of the final assembly line facility at Vadodara by September 2026.

Modi said that India’s defence manufacturing ecosystem was reaching new heights today. “Had we not taken solid steps a decade ago, it would have been impossible to reach this milestone today. At that time, no one could imagine large-scale defence manufacturing in Bharat,” he said.

In September 2021, the defence ministry signed a Rs 21,935-crore deal with Airbus Defence and Space, Spain, to procure 56 C-295MW transport aircraft, which will replace the ageing Avro transport planes of the Indian Air Force. Under the deal, 16 aircraft will be brought in fly-away condition from Spain and 40 will be built in India by TASL. The indigenous content in the first 16 aircraft to be assembled in India will be 48 per cent, and it will increase to 75 per cent in the next 24 aircraft. All 56 aircraft will be equipped with an Electronic Warfare Suite that will be indigenously manufactured by Bharat Electronics Ltd and Bharat Dynamics Ltd.

The PM said that the government expanded the private sector participation in defence manufacturing, made public sector units efficient, converted ordnance factories into seven large companies, empowered DRDO and HAL, and developed two major defence corridors in Uttar Pradesh and Tamil Nadu. “These initiatives have infused the defence sector with new energy. Schemes like iDEX (Innovation for Defence Excellence) have fuelled start-ups, and in the last 5-6 years, nearly 1,000 new defence start-ups have emerged in Bharat. In the past 10 years, Bharat’s defence exports have increased by 30 times. Today, we are exporting defence equipment to over 100 nations in the world,” said the PM. He said that the factory by Airbus and Tata will also generate thousands of jobs in Bharat.

The C-295 is known to be a superior aircraft used for tactical transport of up to 71 troops or 50 paratroopers, and for logistic operations to locations that are not accessible to current heavier aircraft. The aircraft can airdrop paratroopers and loads, and also be used for casualty or medical evacuation. The aircraft is capable of performing special missions as well as disaster response and maritime patrol duties.

Modi said the government was working to make India a hub for aviation and MRO (Maintenance, Repair, and Overhaul). “This ecosystem will pave the way for ‘Made in India’ civil aircraft in the future. You must be aware that various Indian airlines have placed orders for 1,200 new aircraft. This means that in the future, this factory will play a crucial role in the design and manufacturing of civil aircraft to meet the needs of both Bharat and the world,” said Modi.

Remembering industrialist Ratan Tata, the PM said: “Had Ratan Tata ji been with us today, he would have been the happiest among us. Wherever his soul may be, I am sure he would be feeling immense joy today.”