Step 1: Context of the project.
A joint effort between Airbus (Spain) and TATA (India) was established to produce the military transport aircraft C-295 in India.
Step 2: City of inauguration.
The facility was inaugurated in Vadodara, Gujarat, by Prime Minister Narendra Modi and Spanish President Pedro Sánchez. :contentReference[oaicite:0]{index=0}
Step 3: Rationale.
Vadodara hosts the Tata Aircraft Complex / Final Assembly Line (FAL) set up for assembling the C-295s in India in collaboration with Airbus. :contentReference[oaicite:1]{index=1}
Step 4: Conclusion.
Therefore, the correct answer is (3) Vadodara.