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Economic and strategic significance of Spanish PM Sanchez’s India visit. By Ibrahim Khalil Ahasan
The first official visit to India by a Spanish leader in eighteen years, made by President Pedro Sanchez of Spain, marks a significant turning point in the relationship between Spain and India. President Sanchez's visit, which was accompanied by his wife, Begona Gomez, was intended to further the two countries' relationship with an emphasis on defense cooperation, trade, and technology. During his first term in 2017, Modi had already traveled to Spain. Another significant European Union member is Spain. It is friendly with India. President Sanchez and PM Modi had high-level talks during the visit, and the two leaders officially opened the C295 aircraft's Final Assembly Line Plant in Vadodara, a significant project under India's "Make in India" campaign.
This assembly factory is a major advancement for India's aviation and defense industries and is a part of a $2.5 billion deal between Airbus Spain and Tata Advanced Systems Ltd. By 2026, the first of the 56 C295 aircraft that will be produced at the site will be operational. Unquestionably, the Tata-Airbus agreement has improved the IAF's defense capabilities, promoted Made in India, and given India's relations with Europe a new dimension. This event represented four major triumphs: one for India's defense industry, one for the civilian aerospace sector, one for Indian diplomacy in Europe, and one for the Indian Air Force (IAF).
In an effort to promote closer cooperation between the Spanish and Indian entertainment and economic sectors, the Spanish PM met with officials from Mumbai's thriving film industry, business executives, and entrepreneurs. Numerous agreements and Memorandums of Understanding (MoUs) were made, strengthening bilateral cooperation in areas like defense, renewable energy, infrastructure, trade, investment and culture. Since Prime Minister Modi's 2017 trip to Spain, India and Spain, who have had a strong connection for decades, have become closer. The trip is a reflection of Europe's increasing desire for all-encompassing collaboration with India. In the areas of commerce, investment, research, technology, education, defense, and security, Europe has long provided beneficial prospects. Nevertheless, these organic synergies seldom ever resulted in significant results. Indo-Spanish trade and economic ties may see a promising rise further.
It should be mentioned that the two nations have strong trading relations; in 2023, bilateral commerce was $9.9 billion, with India purchasing $2.74 billion and sending $7.17 billion worth of commodities. With $4.2 billion in total foreign direct investment (FDI) stock between April 2000 and June 2024, Spain is also the 16th largest investor in India. Additionally, there are about 80 Indian businesses operating in Spain and about 230 Spanish businesses operating in India. Relationships between people are also solid and expanding. There are 75,000 Indians living in Spain, mostly in the Canary Islands, Valencia, Madrid, and Catalonia. Spain intends to build a consulate in Bengaluru soon, whereas India currently has a consulate general in Barcelona.
India and Europe acknowledge the necessity for increased regional security cooperation in their shared neighborhood in light of possible American isolationism. In the meanwhile, more Indian students are enrolling in European colleges, and Indian tourism in Europe is growing. Indian engineering experts are being welcomed in Europe due to population constraints.
As both countries want to explore future cooperation, including the possible adoption of C295 aircraft types for India's Navy and Coast Guard, President Sanchez's visit is expected to provide this relationship a new boost, especially in areas like defense, economy and IT.
This visit might pave the way for further industrial collaboration between Madrid and New Delhi, generating job opportunities and fortifying strategic partnerships as India establishes itself as a one of the worldwide centers for manufacturing. In terms of commerce, investment, defense cooperation, education, technology, tourism, culture, and people-to-people links, the visit underscores the importance attached by both countries to their bilateral partnership and the consistent upward trajectory of India-Spain relations.
This assembly factory is a major advancement for India's aviation and defense industries and is a part of a $2.5 billion deal between Airbus Spain and Tata Advanced Systems Ltd. By 2026, the first of the 56 C295 aircraft that will be produced at the site will be operational. Unquestionably, the Tata-Airbus agreement has improved the IAF's defense capabilities, promoted Made in India, and given India's relations with Europe a new dimension. This event represented four major triumphs: one for India's defense industry, one for the civilian aerospace sector, one for Indian diplomacy in Europe, and one for the Indian Air Force (IAF).
In an effort to promote closer cooperation between the Spanish and Indian entertainment and economic sectors, the Spanish PM met with officials from Mumbai's thriving film industry, business executives, and entrepreneurs. Numerous agreements and Memorandums of Understanding (MoUs) were made, strengthening bilateral cooperation in areas like defense, renewable energy, infrastructure, trade, investment and culture. Since Prime Minister Modi's 2017 trip to Spain, India and Spain, who have had a strong connection for decades, have become closer. The trip is a reflection of Europe's increasing desire for all-encompassing collaboration with India. In the areas of commerce, investment, research, technology, education, defense, and security, Europe has long provided beneficial prospects. Nevertheless, these organic synergies seldom ever resulted in significant results. Indo-Spanish trade and economic ties may see a promising rise further.
It should be mentioned that the two nations have strong trading relations; in 2023, bilateral commerce was $9.9 billion, with India purchasing $2.74 billion and sending $7.17 billion worth of commodities. With $4.2 billion in total foreign direct investment (FDI) stock between April 2000 and June 2024, Spain is also the 16th largest investor in India. Additionally, there are about 80 Indian businesses operating in Spain and about 230 Spanish businesses operating in India. Relationships between people are also solid and expanding. There are 75,000 Indians living in Spain, mostly in the Canary Islands, Valencia, Madrid, and Catalonia. Spain intends to build a consulate in Bengaluru soon, whereas India currently has a consulate general in Barcelona.
India and Europe acknowledge the necessity for increased regional security cooperation in their shared neighborhood in light of possible American isolationism. In the meanwhile, more Indian students are enrolling in European colleges, and Indian tourism in Europe is growing. Indian engineering experts are being welcomed in Europe due to population constraints.
As both countries want to explore future cooperation, including the possible adoption of C295 aircraft types for India's Navy and Coast Guard, President Sanchez's visit is expected to provide this relationship a new boost, especially in areas like defense, economy and IT.
This visit might pave the way for further industrial collaboration between Madrid and New Delhi, generating job opportunities and fortifying strategic partnerships as India establishes itself as a one of the worldwide centers for manufacturing. In terms of commerce, investment, defense cooperation, education, technology, tourism, culture, and people-to-people links, the visit underscores the importance attached by both countries to their bilateral partnership and the consistent upward trajectory of India-Spain relations.
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