Airbus Plans To Expand Ties With Tata To Strengthen India's Defence Supply Chain

New Delhi, Nov 27 (KNN) Airbus SAS plans to expand its collaboration with Tata Advanced Systems to broaden India's defence supply chain, according to a report by Mint.

It plans to introduce new products aligned with the country's defence requirements.

According to the Mint report, the partnership will involve investments in developing capabilities, including raw material acquisition, manufacturing detailed parts, and establishing sub-assembly and assembly facilities. The initiative will unfold in phases, initially focusing on sourcing components like metallic and composite manufacturing technologies.

The primary focus in the early stages will be on metallic and composite manufacturing technologies, with a priority on electric harnesses to strengthen India's supply chain. The objective is to meet the demand for military transport aircraft as India replaces its ageing military transport fleet.

In 2021, the Indian Air Force inked an agreement with Airbus for 56 C295 military transport aircraft valued at Rs 21,395 crore. Airbus aims to leverage this supply chain for various defence platforms beyond transport aircraft, as the Indian military requires an estimated 100 aircraft.

The collaboration anticipates delivering the first India-manufactured C295 in 2026 from their final assembly line in Vadodara, which will be operational by November 2024.

This strategic partnership further aligns with India's efforts to establish a robust domestic defence supply chain, encouraging global defence companies to invest and manufacture in the country. Initiatives like indigenisation lists, Defence Acquisition Procedure 2020, and defence industrial corridors aim to facilitate foreign firms' entry, support startups, and boost research within India.  

(KNN Bureau)