Spanish PM Sanchez in India seeking to bolster trade ties

NEW DELHI

Spanish Prime Minister Pedro Sanchez was welcomed to India on Monday with a flower-filled open-top parade alongside counterpart Narendra Modi, as Madrid seeks to boost investment in the world's fifth-largest economy.

The duo waved to crowds in a vehicle smothered in orange marigold garlands on their way to inaugurate a military aircraft factory, a collaboration between Tata Advanced Systems and Airbus, in Vadodara in Gujarat state.

It is the first visit by a Spanish premier to India for 18 years.

India's Defence Ministry agreed to a $2.5 billion deal for 56 cargo and troop-carrying C295 aircraft from Airbus Defence and Space in 2021.

"This factory will not only strengthen India-Spain relations," Modi said at the inauguration.

"This project strengthens our industrial ties while underlying our country's deep commitment as a reliable and strategic partner," Sanchez said.

India says trade between the nations is "robust and growing", totalling $9.9 billion in 2023, with India exporting $7.17 billion and importing $2.74 billion.

Spain, the 16th-biggest foreign investor in India with more than 280 Spanish companies in the country, sees opportunities including in construction, pharmacy, energy, as well as in the railways industry.

Leaders of Navantia, Spain's state shipbuilding company, are part of the visit, seeking potential contracts, including for submarines.

Sanchez, who visited China last month, is looking to consolidate relations in Asia and with both Beijing and New Delhi.

The Spanish leader is slated to visit India's financial capital Mumbai on today, where he will hold talks with business chiefs, as well as a visit to a Bollywood film studio in a bid to seek tie-ups with Spanish firms.