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Reading: Airbus Plans Expansion of Tata Partnership to Bolster India’s Defense Supply Chain
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Market Research Activity > Blog > Companies > Airbus Plans Expansion of Tata Partnership to Bolster India’s Defense Supply Chain
Companies

Airbus Plans Expansion of Tata Partnership to Bolster India’s Defense Supply Chain

Suman
Last updated: 2023/11/27 at 10:05 AM
Suman Published November 27, 2023
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Airbus SAS is set to enhance its collaboration with Tata Advanced Systems to strengthen India’s defense supply chain and introduce new products in line with the country’s defense needs, as per a report by Mint. Jorge Tamarit-Degenhardt, the head of the C295 transport aircraft program at Airbus, shared this development.

The partnership aims to make investments in developing capabilities, including acquiring raw materials, manufacturing detailed parts, and establishing sub-assembly and assembly facilities. This initiative will unfold gradually, with an initial focus on sourcing components such as metallic and composite manufacturing technologies.

In its early stages, the collaboration will concentrate on metallic and composite manufacturing technologies, giving priority to electric harnesses to enhance India’s supply chain. The primary goal is to fulfill the demand for military transport aircraft as India looks to replace its aging military transport fleet.

In 2021, the Indian Air Force entered into an agreement with Airbus for 56 C295 military transport aircraft, valued at Rs 21,395 crore. Airbus aims to utilize this supply chain for various defense platforms beyond transport aircraft, given India’s requirement for an estimated 100 aircraft. The partnership envisions delivering the first India-manufactured C295 in 2026 from their final assembly line in Vadodara, which is set to be operational by November 2024.

This strategic collaboration aligns with India’s ongoing efforts to establish a robust domestic defense supply chain, encouraging global defense companies to invest and manufacture within the country. Initiatives like indigenization lists, Defence Acquisition Procedure 2020, and defense industrial corridors are designed to facilitate the entry of foreign firms, support startups, and boost research activities in India.

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