Tata-Airbus to set up India's first privately led final assembly line for H125 helicopters in Karnataka: Report

European aircraft manufacturer Airbus and Tata Group's aerospace arm, Tata Advanced Systems (TASL), will manufacture India's first privately-led Final Assembly Line (FAL) for the H125 helicopters in Karnataka's Kolar, The Economic Times reported.

India’s first privately led helicopter manufacturing unit

Karnataka won the project, beating Andhra Pradesh, Gujarat and Uttar Pradesh, because of its already existing aerospace manufacturing ecosystem.

Hindustan Aeronautics (HAL), a key defence player in the space, is based there.

The plant will reportedly be set up in the Vemgal Industrial area, nearly two hours away from Bengaluru.

According to the report, the Karnataka government's recently promised subsidies on land and other capital incentives, as well as the availability of skilled workforce and expansion potential, were a few of the reasons why the state was selected for the project.

The proposed unit will begin operations with a production capacity of 10 helicopters per year. It might expand its production over the years.

The newly built facility will manufacture Airbus' best-selling H125 helicopter, and will be one among the only four such facilities in the world, the report added, citing sources. Three other units are currently present in France, the US and Brazil.

The project aligns with the government's 'Make in India' initiative, aiming to build self-reliance in the aerospace industry.

India's defence exports to around 100 countries have increased 34 times in the past 11 years, from Rs 686 crore in FY14 to Rs 23,622 crore in FY25.

In FY25, India’s defence exports leapt to a record high of Rs 23,622 crore, up 12 per cent from Rs 21,083 crore in FY24.

The defence ministry has reportedly set a target for 2029 to increase defence exports to Rs 50,000 crore.

"India has evolved from a largely import-dependent military force to the one increasingly focused on self-reliance and indigenous production. In a major boost to defence exports, wide range of items from ammunition, arms, sub-systems/systems and parts & components have been exported to around 80 countries in the just-concluded financial year," a statement by the defence ministry said on April 1.

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