The ruling National Democratic Alliance, has in the past, expressed its aspiration to develop India as a manufacturing base for passenger aircraft, promising to revamp legislation and reduce compliance burden for small businesses and traders, including those related to the goods and services tax.
While most of the manufacturing activities of Airbus remain in Europe, in locations such as Toulouse and Hamburg, the aircraft manufacturer does have assembly lines elsewhere, including the United States, Canada, and China.
The Rafale deal has the potential to either make or break the country's future in aerospace manufacturing.
Lockheed Martin Corporation [NYSE:LMT] and Tata Advanced Systems, announced the formation of a new joint venture company - Tata Lockheed Martin Aerostructures. The company will manufacture aerostructures for the C-130 aircraft produced by Lockheed Martin.