Union Textiles Minister Giriraj Singh on Tuesday, June 2, 2026, took to X to describe the rollout of India's first privately manufactured military transport aircraft, the C-295, in Gujarat as a historic milestone in the country's defence manufacturing journey, citing the project's scale and its alignment with the Atmanirbhar Bharat (self-reliant India) vision.

In his post, Singh wrote: 'Gujarat mein desh ke pehle niji taur par nirmit sainya viman C-295 ka roll-out Bharat ki raksha vinirman kshamata ka ek mil ka patthar hai' — 'The rollout of the C-295, the country's first privately manufactured military aircraft in Gujarat, is a milestone in India's defence manufacturing capability.' He credited the achievement to the leadership of Prime Minister Narendra Modi and the resolve of the Atmanirbhar Bharat mission.

Context

The C-295 programme represents a significant departure from India's historically import-heavy approach to military aviation. The aircraft, a medium tactical transport, is being produced at a facility in Gujarat under a public-private partnership — a model that marks the first time a private Indian entity has manufactured a complete military aircraft domestically. Singh described the development as 'writing history' in the defence sector.

The minister also highlighted the project's financial scale, noting it as a ₹21,935 crore undertaking. He stated it would not only modernise the Indian Air Force's fleet but also strengthen MSMEs and take the Make in India initiative to 'new heights.'

Policy Backdrop

The contract for the procurement and domestic production of 56 C-295 aircraft was signed in 2021, establishing a framework for in-country manufacturing under a public-private partnership. The agreement was structured to ensure technology transfer and progressive indigenisation of components, with a significant role envisaged for the MSME ecosystem in the supply chain.

The Make in India initiative, launched in 2014, had set the stage for private sector entry into defence manufacturing — a domain previously dominated by public sector undertakings. The Atmanirbhar Bharat campaign, announced in 2020, sharpened this focus by emphasising strategic self-reliance, particularly in sectors such as aerospace and defence where import dependence had long been a vulnerability.

Stakeholders and Impact

The Indian Air Force stands as the primary beneficiary, with the C-295 intended to replace ageing transport aircraft in its inventory and enhance tactical airlift capability. The induction of domestically produced aircraft is expected to reduce procurement lead times and lifecycle costs over the long term.

Beyond the Air Force, the programme has drawn attention for its downstream industrial impact. MSMEs across the aerospace supply chain — producing components ranging from structural assemblies to avionics sub-systems — are positioned to benefit from sustained orders tied to the multi-aircraft production run. Singh's post specifically underlined this linkage, framing MSME strengthening as integral to the project's national significance.

What's Next

The rollout marks the transition from assembly setup to actual aircraft production, but the programme's broader success will be measured against delivery timelines and the pace of Indian Air Force squadron induction. Observers will watch whether subsequent aircraft roll off the production line on schedule and whether the indigenisation targets embedded in the contract are met across successive units.

The C-295 programme is also being watched as a template for future private-sector defence manufacturing proposals. If the production model proves replicable, it could accelerate the clearance of additional aerospace and defence projects under updated procurement procedures, deepening India's industrial base in a sector long considered strategically critical.