Gujarat and Spain strengthen economic ties with strategic investments and trade growth

Gandhinagar (Gujarat) [India], October 24 (ANI): Gujarat welcomed Spanish Prime Minister, Pedro Sánchez Pérez-Castejón on Thursday. His visit, for the inauguration of the Tata-Airbus manufacturing facility in Vadodara, marks a significant milestone in Gujarat's efforts to foster deeper bilateral cooperation, an official press release stated.

With its strategic location and well-established industrial infrastructure, Gujarat has emerged as a leading hub for trade between India and Spain. The state's world-class ports, such as Mundra and Kandla, have facilitated a growing volume of trade, making Gujarat an attractive destination for Spanish investments across sectors like automotive, renewable energy, and manufacturing, the press release stated. 

Over the years, several prominent Spanish companies have established a strong presence in Gujarat, attracted by the state's pro-business policies and skilled workforce. Notable investments include Grupo Antolin, which set up a production facility in Sanand in 2015 to serve leading automobile manufacturers such as Ford and Tata. In the renewable energy sector, Siemens Gamesa and Windar Renovables have established manufacturing plants in Halol, reinforcing Gujarat’s leadership in wind energy production.

Trustin Tape, a joint venture between Miarco, a Valencia-based company specialised in technical tapes and adhesive solutions, and Indian PPM Industries, opened its production centre in Dahej, Gujarat in 2018, becoming the first and only manufacturer of masking tape in India. Likewise, Iberchem, a fragrance manufacturer, has been operating a facility in Changodar, Ahmedabad since 2010. These investments have significantly bolstered Gujarat’s standing as a preferred destination for Spanish companies seeking to expand in India.

The Tata-Airbus project in Vadodara further highlights the growing strategic defense cooperation between Gujarat and Spain. Out of 56 C295 military aircraft to be produced for India, 40 will be manufactured in India, strengthening the ties between the two regions.

Gujarat’s exports to Spain have also seen substantial growth, reaching USD 0.94 billion in 2023-24. Key exports include organic chemicals, machinery, mineral fuels, and iron and steel products, reflecting the state's diverse industrial base.

Beyond trade, Gujarat and Spain have fostered cultural and educational exchanges. Spanish businesses have contributed to Gujarat's infrastructure and energy sectors, while interest in Spanish art, music, and cuisine is steadily growing among Gujaratis. The potential for collaboration in higher education, particularly in fields like business management, arts, and technology, is also on the rise, the press release stated

India and Spain enjoy a robust bilateral trade relationship, with trade volumes reaching USD 7.24 billion in 2023-24. Recent years have seen steady growth, with trade between the two countries expanding across key sectors such as renewable energy, infrastructure, defense, and technology. Bilateral trade has increased from USD 6.77 billion in 2021-22 to USD 7.24 billion in 2023-24, showcasing a strong upward trajectory.

Spain is India’s sixth-largest trade partner within the European Union, with India's key exports including mineral fuels, chemical products, machinery, apparel, and iron and steel. Indian companies in IT, pharmaceuticals, and engineering have established a significant presence in Spain, further enhancing cross-border collaboration. Spanish investments in India, valued at over USD 4.2 billion (April 2000 - June 2024), have played a crucial role in technology transfer and industrial growth.

Spain, in return, has been instrumental in India’s industrial and technological advancements. India imports ships, floating structures, machinery, and beverages from Spain, supporting key sectors like manufacturing and defense. With over 280 Spanish companies operating in India, particularly in states like Gujarat, Maharashtra, and Tamil Nadu, both nations are expected to explore new avenues of collaboration in renewable energy, infrastructure, and defence.

As Gujarat welcomes  Pedro Sánchez, the state is eager to further expand trade, investment, and cultural ties with Spain, paving the way for mutual prosperity and growth. (ANI)