Published on
26 Dec 2024

Morocco advances Indian defence manufacturing exports

Tata Advanced Systems to build combat vehicle factory near Casablanca

Photo source: Tata Advanced Systems

Morocco is positioning itself as a gateway for Indian defence exports. Tata Advanced Systems, a defence subsidiary of the Tata Group, has decided to produce combat vehicles in the Kingdom. This is the very first time, an Indian firm will manufacture a military-use production facility outside India. Earlier in December, Rabat hosted the India-Morocco Defence Industry Seminar, bringing together industry stakeholders to explore more collaboration opportunities.

The new plant, located in the Casablanca area, will manufacture up to 100 WhAP 8×8 ground combat vehicles annually. Of these, a total of 150 units are earmarked for Morocco’s armed forces, while others are destined for export markets. The facility will create 90 direct and 250 indirect jobs. Notably, this also marks Morocco’s first large-scale defence manufacturing plant.

Morocco is building on the success of its automobile manufacturing sector – which has attracted global brands like Renault, Peugeot, BYD and Volkswagen – to establish itself as a defence industry hub. The country has introduced a comprehensive legal framework to encourage defence sector investments, aiming to create an industrial ecosystem around defence manufacturing. Morocco’s extensive network of free trade agreements with countries across Africa and Europe further enhances its appeal to investors.

The government has approved two dedicated military industry zones to support national defence equipment production, underpinned by an increased defence budget of US$12.2bn for 2024. Morocco’s Royal Armed Forces have steadily ramped up procurement activities; arms expenditure increased from US$235m in 2021 to US$352m in 2022.

Morocco has traditionally relied on the United States as its main supplier of arms, with major deals including Abrams tanks, F-16 fighter jets and Apache helicopters. It has also deepened ties with Israel, acquiring advanced weapons such as drones and a US$1bn spy satellite for surveillance. Meanwhile, China has emerged as a meaningful partner, providing air defence systems and missiles deployed near Algeria to fortify Morocco’s eastern borders against the separatist Polisario Front.

Tata’s investment is a testament to the growing defence cooperation between Morocco and India and is indicative of a notable shift in Indian foreign policy. Up until 2000 New Delhi was a supporter of the Polisario and officially recognised the Sahrawi Arab Democratic Republic (SADR). But that position changed after Morocco emerged as a reliable supplier of rock phosphate fertilizer. Today, Morocco represents a strategic partner in its broader push to enhance economic and defence engagement with Africa. Initiatives such as the India-Africa Defence Dialogue and joint military exercises with African nations underscore India’s ambition to expand its footprint on the continent. Earlier this year, an Indian naval ship made a port call in Casablanca, underscoring strengthening defence ties.

References

Morocco welcomes Indian Navy visit, fostering evolving defense partnership‘, Morocco World News, 15 July 2024

Morocco teams up with Indian company to produce armoured combat vehicle‘, The Arab Weekly, 30 September 2024

Tata to set up final assembly line for armoured platform in Morocco‘, The Hindu, 01 October 2024

Bird & Bird advised Tata Advanced Systems Limited on its strategic partnership with the Kingdom of Morocco’s Royal Armed Forces for the local production of wheeled armoured platform combat vehicles‘, Bird & Bird, 14 October 2024

Morocco to manufacture Indian WhAP vehicles‘, defenceWeb, 28th October 2024

Morocco signs new defense deal with India’s Tata Group‘, Morocco World News, 09 December 2024

‘We want you in Morocco’: North African country welcomes India defense investment‘, Morocco World News, 16 December 2024

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