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India offers to buy more U.S. helicopters, hopes to drive down costs

vishnuvardhana

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India has offered to increase an order for U.S. Apache helicopters to drive down costs as the two sides race to close a $1.4 billion deal, officials said, the first big military contract since a new government took office in New Delhi.

The Apache gunships and a deal for Chinook helicopters, both built by Boeing, top the agenda for visiting U.S. Defense Secretary Chuck Hagel's talks on Friday with India's incoming administration led by Prime Minister Narendra Modi.

India and the United States have rapidly expanded military sales in recent years, despite discord in areas such as trade and intellectual property rights.

Washington is keen to further step up defence cooperation with India, which it sees as a key strategic partner in Asia in the face of an increasingly powerful and assertive China.

India has offered a follow-on order of 39 AH-64D Apache helicopters in addition to the 22 now being negotiated, a defence ministry official said. The two sides have been wrangling over the price of the gunships in a deal estimated to be worth $1.4 billion.

The initial batch of helicopters is meant to replace the Indian Air Force's ageing fleet of Soviet-era aircraft and will be armed with Hellfire and Stinger missiles.

The Indian army has separately requested a fleet of at least 39 of these attack aircraft, some of which will be deployed as part of a new mountain division it is raising along the disputed border with China, an army official said.

"The point is we are looking at 60 to 70 pieces eventually, so the expectation is the vendor will factor that in, in the price negotiations," said the defence ministry official, asking not to be named in line with ministry policy.

U.S. defence sales to India have grown from the low hundreds of millions of dollars in the decade to 2008 to more than $9 billion since that year.

According IHS Jane's, a defence research firm, India was the top foreign buyer of U.S. arms last year.

India offers to buy more U.S. helicopters, hopes to drive down costs| Reuters
 
Not surprising news....
The extra Apaches would be asked for anyway. Just as there should (and will be) an increase in the options for Chinooks.
 
India has offered to increase an order for U.S. Apache helicopters to drive down costs as the two sides race to close a $1.4 billion deal, officials said, the first big military contract since a new government took office in New Delhi.

The Apache gunships and a deal for Chinook helicopters, both built by Boeing, top the agenda for visiting U.S. Defense Secretary Chuck Hagel's talks on Friday with India's incoming administration led by Prime Minister Narendra Modi.

India and the United States have rapidly expanded military sales in recent years, despite discord in areas such as trade and intellectual property rights.

Washington is keen to further step up defence cooperation with India, which it sees as a key strategic partner in Asia in the face of an increasingly powerful and assertive China.

India has offered a follow-on order of 39 AH-64D Apache helicopters in addition to the 22 now being negotiated, a defence ministry official said. The two sides have been wrangling over the price of the gunships in a deal estimated to be worth $1.4 billion.

The initial batch of helicopters is meant to replace the Indian Air Force's ageing fleet of Soviet-era aircraft and will be armed with Hellfire and Stinger missiles.

The Indian army has separately requested a fleet of at least 39 of these attack aircraft, some of which will be deployed as part of a new mountain division it is raising along the disputed border with China, an army official said.

"The point is we are looking at 60 to 70 pieces eventually, so the expectation is the vendor will factor that in, in the price negotiations," said the defence ministry official, asking not to be named in line with ministry policy.

U.S. defence sales to India have grown from the low hundreds of millions of dollars in the decade to 2008 to more than $9 billion since that year.

According IHS Jane's, a defence research firm, India was the top foreign buyer of U.S. arms last year.

India offers to buy more U.S. helicopters, hopes to drive down costs| Reuters

Are there going to be any Industrial Benefits which we may receive from this deal
 
Not surprising news....
The extra Apaches would be asked for anyway. Just as there should (and will be) an increase in the options for Chinooks.
Surprising to the extent that this seems to be a very pragmatic decision on the MoD/GoI's part. It is rare to see this sort of common sense be applied in Indian defence procurements .
 
Surprising to the extent that this seems to be a very pragmatic decision on the MoD/GoI's part. It is rare to see this sort of common sense be applied in Indian defence procurements .

Well, it seems to have happened (or is happening) anyway......the pragmatic approach.
But it had to await the departure of Anthony and his "teflon-coated dhotis".
 
Well, it seems to have happened (or is happening) anyway......the pragmatic approach.
But it had to await the departure of Anthony and his "teflon-coated dhotis".
Indeed, but we all knew towards the end that that joker was only looking out for himself so no surprises there.
 
Indeed, but we all knew towards the end that that joker was only looking out for himself so no surprises there.

Apache's are highly network centric fighters whose full utilization will only happen in a complete network of radars, sensors, awacs and other frontline fighters and even ground troops. It isn't a stand alone system by any stretch of imagination. Is this an indication that IA is inclined to go the US army way of war fighting? with more and more US systems come more and more adaptability to their network orientation...does that mean we are consciously adapting US systems in the near future? @gambit.
 
Are there going to be any Industrial Benefits which we may receive from this deal
I don't see why not if the brits can build Apaches you all can too.
thinking U.S builds the first 30 to 50 and Indian can build the rest on license, how many you all need? a few hundred :p: you all got a big boarder and china going to have thousands of tanks and Pakistan and Bangladesh might have a thousand or so too :toast_sign:

you all going to need thousands of Hellfires, maybe Indian can sign up as a partner in R&D and manufacture them as all.
 
Are there going to be any Industrial Benefits which we may receive from this deal

I do not know about that aspect for certain. But speculating on the basis of what is known and the decipherable trends of late; that will certainly be built-in to the deal to some extent. In the form of offsets.

It may not include the most important or critical technologies, but that does not matter. India needs to absorb the recent industrial processes and management systems in the Aerospace Industry. That is the part that can come through. Coupled with the latest changes in Defence FDI Policy; we will see the off-set work going to the Pvt Sector like TATA instead of DPSUs. That will be hugely significant step forward.

And as I have already ventured to express here on this forum earlier, that will take India towards becoming a regional aero-space manufacturing hub when the Aerospace Majors discover the potentials. So far they did want to touch the DPSUs with a barge-pole if they could help it.
 
Finally some common sense :tup: Lets hope this sense is also carried to MMRCA deal.
:coffee: Lets wait and see, if we really are that silly to waste that much money for the pride of IAF.
Are you against the increased number of Apaches ???
 
I don't see why not if the brits can build Apaches you all can too.
thinking U.S builds the first 30 to 50 and Indian can build the rest on license, how many you all need? a few hundred :p: you all got a big boarder and china going to have thousands of tanks and Pakistan and Bangladesh might have a thousand or so too :toast_sign:

you all going to need thousands of Hellfires, maybe Indian can sign up as a partner in R&D and manufacture them as all.

Let's not get ahead of ourselves,I gonna wait & see how much R&D you are gonna offer
 
I don't see why not if the brits can build Apaches you all can too.
thinking U.S builds the first 30 to 50 and Indian can build the rest on license, how many you all need? a few hundred :p: you all got a big boarder and china going to have thousands of tanks and Pakistan and Bangladesh might have a thousand or so too :toast_sign:

you all going to need thousands of Hellfires, maybe Indian can sign up as a partner in R&D and manufacture them as all.

I wonder how Chinese tanks will negotiate the mighty Himalaya's especially backed by "chinese" engines, as for the rest we have bigger guns in our tanks and more numbers than them.
 
Let's not get ahead of ourselves,I gonna wait & see how much R&D you are gonna offer
I reckon you all would get enough information to build the airframe. whether you all want Indian avionics is up to you.
we would probably supply the engines and TADS/PNVS.
 
Good Decision. Finally someone in MOD is applying some common sense. Giving bulk orders means saving $$$

They should do the same of Chinooks
 
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