NewsCanvassEdu

India and Spain Relations | History, Economy, and Strategic Cooperation

India and Spain Relations | History, Economy, and Strategic Cooperation

The recent State Visit of Spanish Prime Minister Pedro Sánchez to India marks a historic milestone in the relationship between India and Spain. This is the first visit by a Spanish premier to India in nearly two decades, underscoring the growing importance of cooperation between the two nations in defense, trade, culture, and multilateral engagement.

Defence Cooperation: C-295 Aircraft Project

One of the most significant outcomes of the visit was the joint inauguration by Prime Minister Narendra Modi and Prime Minister Pedro Sánchez of the Final Assembly Line Plant of C-295 aircraft in Vadodara.

  • This is India’s first private military transport aircraft production facility, developed by Tata Advanced Systems Limited (TASL) in partnership with Airbus Defence and Space of Spain.
  • Under the $2.5 billion contract, 56 C-295 aircraft will be supplied: the first 16 delivered directly from Spain, and the remaining 40 assembled in India.
  • The first “Made-in-India” C-295 is expected in 2026, with all deliveries completed by 2031.
  • The project will create a complete aerospace ecosystem in India, involving Bharat Electronics Ltd, Bharat Dynamics Ltd, and MSMEs, while also strengthening Spain’s role as a defense partner.

This collaboration highlights how India and Spain are working together to modernize India’s defense sector while promoting technology transfer and industrial growth.

Expanding Bilateral Relations

During the visit, both leaders emphasized the need to deepen cooperation across multiple sectors:

  • Launch of a Fast Track Mechanism and the India-Spain CEOs Forum to boost trade and investment.
  • Designation of 2026 as a special year for cultural exchange, tourism, and collaboration in artificial intelligence.
  • Announcement of a Spanish Consulate in Bengaluru and the operationalization of an Indian Consulate in Barcelona.
  • Signing of agreements on rail transport, customs cooperation, and infrastructure development.
  • Joint support for the India-EU Free Trade Agreement and the India-Middle East-Europe Economic Corridor (IMEEC).

 India and Spain: A Historical Perspective

Diplomatic relations between India and Spain were formally established in 1956 with the opening of the Spanish Embassy in New Delhi.

  • India appointed its first resident Ambassador to Spain in 1965.
  • Several state visits have strengthened ties, including Prime Minister Modi’s 2017 visit to Spain, the first by an Indian PM in nearly 30 years.
  • Agreements signed during past visits covered cybersecurity, renewable energy, and civil aviation, laying the foundation for today’s stronger partnership.

Economic and Trade Relations

Economic cooperation is a cornerstone of India-Spain relations:

  • Spain is India’s 6th largest trade partner in the EU.
  • Bilateral trade in goods in 2023 reached $8.25 billion, growing by 4.2% year-on-year.
  • India’s top exports to Spain include mineral fuels, iron and steel, apparel, machinery, and marine products.
  • Spain’s top investments in India are in renewable energy, automotive, ceramics, and infrastructure.
  • Over 280 Spanish companies operate in India, while 80 Indian companies are active in Spain, particularly in IT, pharmaceuticals, and logistics.
  • The India-Spain Joint Commission on Economic Cooperation (JCEC), established in 1972, continues to drive trade and investment dialogue.

Defence and Security Cooperation

Spain has become a key partner in India’s defense modernization:

  • Collaboration in aerospace and naval technology.
  • Transfer of submarine technology and joint projects in military aircraft.
  • The C-295 aircraft deal is the first Make in India defense aircraft project, symbolizing trust and long-term cooperation.

Multilateral Cooperation

India and Spain share common ground on global issues:

  • At the United Nations, both nations support peace, sustainable development, and humanitarian aid.
  • As members of the G20, they collaborate on global economic reforms and climate action.
  • Spain is also a member of the International Solar Alliance (ISA), aligning with India’s renewable energy goals.

Cultural and People-to-People Ties

Cultural exchange is another strong pillar of India-Spain relations:

  • The Casa de la India in Valladolid promotes Indian culture in Spain through art, literature, and music.
  • Student exchange programs between Indian and Spanish universities are growing, with Spain becoming a popular destination for Indian students in business and engineering.
  • The Indian diaspora in Spain, numbering around 55,000, contributes actively to hospitality, IT, healthcare, and retail sectors.

About Spain

  • Spain is located in southwestern Europe, occupying most of the Iberian Peninsula.
  • It is the 4th largest country in Europe, bordered by France, Portugal, the Mediterranean Sea, and the Atlantic Ocean.
  • The Pyrenees mountains form a natural border with France, while the Strait of Gibraltar separates Spain from North Africa.

Conclusion

The State Visit of Spanish Prime Minister Pedro Sánchez to India has opened a new chapter in India-Spain relations. From defense cooperation and trade to cultural exchange and multilateral engagement, the partnership is expanding across every sector. With projects like the C-295 aircraft plant and initiatives in renewable energy, AI, and education, India and Spain are not only strengthening bilateral ties but also shaping a shared future of innovation, sustainability, and global cooperation.

To Download Monthly Current Affairs PDF Click here

Click here to get a free demo

Discover all about CLAT Exam

View All