India – Spain Bilateral Relations

Syllabus: GS2/IR

Context

• The Spanish Prime Minister paid a State Visit to India.

About

• PM Sanchez and Prime Minister Modi jointly inaugurated the Final Assembly Line Plant of C-295 aircraft co-produced by Airbus Spain and Tata Advanced Systems Ltd. at Vadodara.
  • This plant will roll out the first ‘Made in India’ C295 aircraft in 2026, out of a total of 40 aircrafts to be manufactured in India. 
  • Airbus Spain is also delivering 16 aircrafts in ‘fly-away’ condition to India, out of which 6 have already been delivered to the Indian Air Force.
• India and Spain signed several memorandums of understanding (MOUs) during the bilateral meeting. 

Overview of India-Spain Bilateral Relations

• Diplomatic relations between India and Spain were established in 1956.
  • Since then, both countries have engaged in high-level visits and discussions to strengthen their political ties.
• Economic Relations: Spain is India’s 6th largest trade partner in Europe. Bilateral trade reached US$ 9.9 billion in 2023. India´s exports stood at US$ 7.17 billion while imports stood at US$ 2.74 billion during the same period.
  • India-Spain Joint Commission on Economic Cooperation (JCEC) was set up under the 1972 Trade and Economic Cooperation Agreement and has since met twelve times.
  • Investment: Spain ranks as the 16th largest foreign investor in India, with cumulative FDI totaling US$3.94 billion as of December 2023.
• Defence: Spain has emerged as a prominent member in Defence diversification and modernization for India.
  • The procurement of 56 C295 aircraft from Airbus Spain represents the first Make in India project in the defence aircraft sector. 
• Tourism in both directions is growing, with 250,000 Indian tourists travelling to Spain every year, and 40,000 Spanish tourists visiting India. 
• The Spain-India Council Foundation (a private non-profit organization that functions in coordination with the Spanish Ministry of Foreign Affairs) organized the 3rd Spain-India Forum in 2023, in collaboration with Observer Research Foundation (ORF).
  • This Forum serves as a crucial tool for promoting bilateral relations between Spain and India.
• Multilateral Cooperation: Both nations collaborate in international forums, including the United Nations, G20 and International Solar Alliance (ISA) addressing global challenges such as climate change, terrorism, and sustainable development.
• Diaspora: The Indian diaspora in Spain numbers around 75000, concentrated in Catalonia, Valencia, Madrid and Canary Islands. 

Way Ahead

• India and Spain’s evolving economic and diplomatic relationship holds significant promise, with key areas of cooperation including trade, investment, renewable energy, infrastructure, and defense. 
• Spanish expertise in renewable energy, infrastructure, and environmental technology complements India’s expanding market. 
• Initiatives like “Make in India” and “Digital India” create favorable conditions for further collaboration, encouraging foreign direct investment.
• As both countries continue to leverage their mutual strengths, the future of India-Spain bilateral ties looks bright, with enhanced cooperation.

Source: PIB