India’s Cabinet Committee on Security approved $3 billion for the acquisition of 56 Airbus C-295MW transport aircraft to replace the Indian Air Force fleet of Hawker Siddeley 748M Avro aircraft. The Avro is a British design that was manufactured in the government owned factory of HAL – Hindustan Aeronautics Ltd in Kanpur, in northern India.
“Sixteen aircraft will be delivered in flyaway condition from Airbus Defense and Space S.A., Spain, within 48 months of signing of the contract. Forty aircraft will be manufactured in India by TATA Consortium within ten years of signing the contract,” India’s defense ministry said in a statement. “This is the first project of its kind in which a military aircraft will be manufactured in India by a private company,” it added.

The terms of the order will also require setting up a ‘‘D’ Level servicing facility for C-295MW aircraft in India before deliveries are completed. This facility will act as a regional MRO hub for various variants of C-295 aircraft. Unlike some of its contemporaries, the C-295 also has civil certification.
Commenting on the development, Ratan Tata, ex-chairman of Tata Sons said, “The clearance of the joint project between Airbus Defense and Tata advanced systems to build the C-295 is a great step forward in the opening up of aviation and avionics projects in India.
“The C-295 is a multi-role aircraft with several re-configurations to meet mission requirements. It envisages total manufacturing of the aircraft in India, and will create a domestic supply chain capability to international standards, which has never been undertaken before.”
Last updated: December 26th, 2025
