Spain PM’s Visit To India

SPAIN PM’s VISIT TO INDIA

On 28th Oct 2024, Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez jointly inaugurated a facility in Vadodara for manufacturing the C 295 medium-lift tactical transport aircraft, marking a significant step in India’s defense manufacturing capabilities.

KEY HIGHLIGHTS OF THE INAUGURATION

Overview of the Facility:

• C295 Aircraft Production: This facility, set up by Tata Advanced Systems Limited (TASL) and Airbus, is India’s first private facility dedicated to military aircraft production. The first “Made in India” aircraft will be completed by September 2026.
• Local Impact: The project will produce over 18,000 parts locally and is expected to create more than 10,000 jobs across the country.

ABOUT C 295

The C-295’s name is a combination of the following:

• C: Stands for CASA, the original manufacturer
• 2: Stands for the number of engines
• 95: Stands for the payload capacity of 9.5 tonnes

ABOUT C 295 PROGRAM

• In 2021, India’s Ministry of Defence signed a ₹21,935-crore agreement with Airbus for the procurement of 56 C-295 transport aircraft.
• This procurement is intended to replace the Indian Air Force’s aging fleet of Avro-748 planes.
• Delivery Schedule:

1. Fully Assembled Aircraft: 16 C-295 aircraft will be delivered fully assembled from Spain.
2. Local Assembly: The remaining 40 aircraft will be assembled at the new facility in Vadodara.
3. Timeline: The first locally produced aircraft is expected to be completed by September 2026, with all 40 units scheduled for delivery by August 2031.

BILATERAL TALKS & AGREEMENTS

• Strengthened Ties: PM Modi emphasized that this project signifies a new chapter in India-Spain relations, enhancing cooperation in defense and other sectors.
• Agreements Signed: The two leaders finalized agreements on infrastructure, railways, renewable energy, culture, and tourism.
  • Specific Agreements
    • MoU on Rail Transport: This agreement aims to boost cooperation in infrastructure planning and operation for both passenger and freight transport.
    • Customs Cooperation: The customs agreement will facilitate better information exchange to combat customs offenses.

HISTORICAL TIES

• Establishment of Relations: India and Spain formalized their diplomatic ties in 1956, laying the groundwork for future cooperation.
• Cultural and Democratic Values: Despite limited early interactions, both nations share core values such as democracy, respect for multiculturalism, and a commitment to global peace, which have solidified their relationship over time.
• High-Level Interactions: Regular exchanges between leaders have been crucial in strengthening diplomatic and economic ties.

ECONOMIC & COMMERCIAL COOPERATION

• Trade Relations: Positive developments in trade and investment noted.
• Investment in India: About 230 Spanish companies operate in India, showing support for ‘Make in India.’
• Fast Track Mechanism: A new mechanism to facilitate mutual investments was established.
• Joint Commission for Economic Cooperation: Next meeting of the JCEC to be held in Spain in early 2025.

BILATERAL TRADE

• Trade Partner Status: Spain ranks as India’s 6th largest trade partner within the European Union.
• 2023 Trade Figures:
  • Total Trade Volume: Approximately $8.25 billion, showing a 4.2% increase from the previous year.
  • Exports to Spain: About $6.33 billion, reflecting a growth of 5.2%.
  • Imports from Spain: Roughly $1.92 billion, with a modest growth of 1.05%.
• Key Exports: Major items exported from India include mineral fuels, chemicals, iron and steel, electrical machinery, and apparel.

BILATERAL INVESTMENT

• Spanish Investment in India: From April 2000 to December 2023, Spanish FDI in India reached approximately $3.94 billion, making Spain the 16th largest investor in the country. Over 280 Spanish companies operate in sectors like renewable energy and automotive.
• Indian Investment in Spain: Indian FDI in Spain is around $900 million, with investments from about 80 Indian companies in IT, pharmaceuticals, and logistics.
• Economic Cooperation Frameworks:
  • Joint Commission on Economic Cooperation (JCEC): Established in 1972, with the latest meeting occurring in April 2023, focusing on enhancing economic ties.
  • CEOs Forum: Launched in 2015, this platform facilitates discussions between business leaders to boost trade relations.

STRATEGIC SIGNIFICANCE

• Defense Collaboration: Spain plays an important role in India’s defense modernization, contributing expertise in areas like aerospace and naval technology. Spanish companies are involved in key defense projects, enhancing India’s military capabilities.
• Counter-Terrorism Efforts: Both nations recognize the threat of global terrorism and actively cooperate in intelligence sharing and strategic initiatives to combat it.
• Sustainable Development: Spain and India are committed to climate action, working together on sustainable development goals and renewable energy projects, aligning with international agreements like the Paris Agreement.

GLOBAL ISSUES & COOPERATION

• 2026 Celebrations: Following a recent visit by Spanish Prime Minister Pedro Sánchez—the first by a Spanish PM in 18 years—India and Spain have announced plans to celebrate 2026 as the India-Spain Year of Culture, Tourism, and AI.
• This initiative aims to enhance cultural exchanges and cooperation in artificial intelligence, emphasizing the shared interests of both nations.
• War in Ukraine: Both leaders called for a peaceful resolution and adherence to international law.
• Middle East Stability: Joint condemnation of violence and calls for humanitarian aid.
• Climate Change and Renewable Energy: Commitment to collaborative efforts in addressing climate change.
• Counter-Terrorism Cooperation: Strong condemnation of terrorism and a call for global action against terrorist organizations.
• Spain has supported India’s bid for permanent membership in a reformed United Nations Security Council.

MULTILATERAL COOPERATION & DIASPORA

• United Nations: India and Spain collaborate on various global issues, focusing on peace, humanitarian aid, and sustainable development.
• G20 Membership: As G20 members, both countries address global economic challenges, advocating for trade reforms and cooperative climate action.
• International Solar Alliance (ISA): Spain’s involvement in the ISA supports India’s initiative to promote solar energy and sustainable practices globally.

Indian Diaspora in Spain

• Community Overview: The Indian diaspora in Spain is approximately 55,000 strong as of 2023, with significant contributions in sectors such as IT, hospitality, retail, and healthcare.

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