Expanding Collaboration: Airbus, Tata to Scale Up Defence Production, Broaden Supply Chain

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New Delhi: Tata Advanced Systems has increased its collaboration with Airbus SAS to broaden India’s defence supply chain and introduce new products that align with India’s defence requirements. The partnership is for investing in developing capabilities, including manufacturing detailed parts, raw material acquisition, and establishing sub-assembly and assembly facilities.

The project will unfold in phases, with the primary focus in the initial step being on metallic and composite manufacturing technologies, along with electric harnesses to strengthen the country’s supply chain. The goal is to meet the demand for military transport aircraft as India moves towards replacing its ageing military transport fleet.

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In 2021, Airbus signed an agreement with the Indian Air Force for 56 C-295 military transport aircraft valued at Rs 21,395 crore. Airbus aims to leverage the supply chain for various defence platforms beyond transport aircraft, as the Indian military requires around 100 planes.

This strategic partnership further aligns with the country’s efforts to establish a strong domestic defence supply chain, encouraging global defence companies to invest and manufacture in India.

India’s initiatives such as Defence Acquisition Procedure 2020, indigenisation lists, and defence industrial corridors, are aimed at facilitating foreign company entry, supporting start-ups, and boosting research within the country.

 

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