MadridAlthough some voices point out that India‘s economic boom is a “myth”, due to the increase in inequalities, in the words of the Indian economist Ashoka Mody, in the West it is not overlooked that the country has has become the world’s fifth largest economic power and that the agenda of the Indian Prime Minister, Narendra Modi, not only has economic growth among its priorities, but also aspires to be an alternative trade ally to China. It is in this context that the first official trip of the Spanish Prime Minister, Pedro Sánchez, to India takes place. In fact, this is the third attempt by a president of the Spanish government to make his way to New Delhi – José Luis Rodríguez Zapatero traveled there in 2006 and Felipe González in 1993 – and, at the same time, to strengthen and diversify the presence of ‘Spain throughout the Asian region.
Pedro Sánchez’s trip was marked by the inauguration this Monday of an Airbus plant in the town of Baroda (Gujarat). The factory will be dedicated to the final assembly of 40 C-295 military transport aircraft of the Indian Armed Forces. It is a joint project with the Indian company Tata that was signed in September 2021 for a value of 2.1 billion euros. “Not only is a state-of-the-art industrial facility being inaugurated, but it is an extraordinary project between two emblematic companies,” said Sánchez during the inauguration ceremony.
Apart from the Prime Minister of India and other authorities of the Asian country, the Spanish President was accompanied by the Minister of Industry, Jordi Hereu, and the head of Transport, Óscar Puente, as well as representatives of both companies . During the visit, the two governments also signed a memorandum of understanding for the development of infrastructure and, in particular, the train in the Asian country. For years, the State has taken advantage of the internal deployment of high speed to sell abroad and capitalize on contracts.
Duel for the Submariners
But Spain’s interests in India go further. In order to avoid an outcome like the one experienced with the Tata Motors battery factory – it was an investment from New Delhi that Spain lost and ended up splashing out in the United Kingdom -, the Spanish president has taken advantage of the trip to defend Navantia’s offer for the construction of six submarines worth 4.8 billion euros, which would also serve the Indian Navy.
The Spanish public company dedicated to military and civil shipbuilding, however, has a competitor: Germany’s TKMS. In fact, German Chancellor Olaf Scholz was also in India last week as part of an official trip. Thus, Sánchez has taken advantage of the meeting with Modi to address the tender. Government sources explain that the Spanish president has expressed “unconditional support” to Navantia and has defended “the quality and specifications of Navantia’s proposal” for the construction of the submarines. Now, it is Modi who has to resolve the conflict.
