NEW DELHI: India and Spain on Monday finalised agreements for cooperation in rail transport and customs matters as Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez charted a course for bolstering collaboration in political, economic, defence and security ties.
Modi and Sanchez, the first Spanish premier to travel to India in nearly two decades, held talks at the Lakshmi Vilas Palace in Vadodara after inaugurating a new production facility for C295 military transport aircraft. The two leaders also discussed regional and global issues such as the conflicts in Ukraine and West Asia, officials said.
“The partnership between India and Spain is like a prism that is multidimensional, vibrant and ever evolving,” PM Modi said at the inauguration of the plant, speaking in Hindi. “I would invite Spanish industry and innovators to come to India and become our partners in our development journey.”
Sanchez noted that the International Monetary Fund (IMF) has raised the growth forecast for the Spanish economy to 2.9%, which is four times the forecast for the Eurozone. “If Indian companies want to grow, they can trust Spain,” he said.
The two sides signed a memorandum of understanding (MoU) on rail transport, which officials said, will boost cooperation in design, development and operation of infrastructure, rail facilities and equipment, as well as urban and regional railway systems.
They also signed an agreement on cooperation and mutual assistance in customs matters and agreed to set up a fast-track mechanism to facilitate mutual investments. They announced that 2026 will be observed as the “India-Spain Year of Culture, Tourism and AI”.
Tanmaya Lal, secretary (West) in the external affairs ministry, told a media briefing in Vadodara that India perceives Spain as an important partner in the European Union. Spain is the fifth largest economy in the EU and two-way trade is worth almost $10 billion. Spain’s investments in India are worth $4 billion, while Indian investments in the European country have touched $1 billion.
Tourism in both directions is growing, with 250,000 Indian tourists travelling to Spain every year, and 40,000 Spanish tourists visiting India. India operationalised a new consulate in Barcelona in August, while Spain will soon open a mission in Bengaluru.
India and Spain also favour the early conclusion of an “ambitious and meaningful” free trade agreement between India and the EU, he said.
A joint statement issued after the meeting between the two leaders said India and Spain will hold regular dialogues to strengthen and diversify cooperation in key areas such as defence, security including cyber-security, trade and economic issues, culture, tourism, education and people-to-people ties.
Sanchez highlighted Spain’s commitment to the “Make in India” initiative through the activities of 230 Spanish companies present in India and the two leaders sought further collaboration in areas such as energy, including renewables, nuclear and smart grids, food processing, health services, and automotive and transport infrastructure, where Spanish firms have expertise.
“The leaders expressed their deepest concern over the war in Ukraine and reiterated the need for a comprehensive, just and lasting peace in line with international law, and consistent with the purposes and principles of the UN Charter, including respect for sovereignty and territorial integrity,” the joint statement said.
Responding to a question on the Russia-Ukraine conflict figuring in the talks between the two leaders, Lal said both sides shared their perspectives on the situation. Modi reiterated India’s position that any conflict can only be resolved through dialogue and diplomacy, and “this is not the time for war” as a solution can’t be found on the battlefield, Lal said.
Modi and Sanchez “shared their firm commitment to achieving peace and stability in the Middle East, and expressed their deep concern at the escalation of the security situation in West Asia and called for restraint by all concerned”, the joint statement said.
Both Modi and Sanchez referred to the cultural connections between the two sides. Sanchez noted that 7,000 km separate Madrid and New Delhi, but Spanish guitarist Paco de Lucia and Indian musician Ravi Shankar had brought the countries closer in the late 1960s by fusing the Spanish guitar with the spirituality of the sitar.
Modi recalled the contributions of Father Carlos González Vallés, a Spanish Jesuit priest who spent 50 years in Gujarat and enriched its culture through his writings. “We honoured him with the Padma Shri for his great contribution,” he said.
