Hafizzz
SENIOR MEMBER
- Joined
- Jun 28, 2010
- Messages
- 5,041
- Reaction score
- 0
India's defence deficit is America's gain: Arms deals worth $5 billion are at stake as PM prepares to visit the US | Mail Online
Days before senior Pentagon functionary Ashton Carter arrived in New Delhi earlier this week, the defence ministry cleared purchase of six C-130 J Super Hercules special operations aircraft for the Indian Air Force.
The deal, worth around Rs 4,000 crore, might well be the first in the series of big contracts lined up to be signed with the US in the coming months.
US deputy secretary of defence Ashton Carter was upbeat after his interactions with Indian security establishment as his visit had served the purpose of giving a much needed push to weapon sales to New Delhi.
He assured that the stumbling blocks in the way in the form of bureaucratic hurdles would be overcome by both the sides.
Carter's visit has set the stage for meeting between US President Barack Obama and Prime Minister Manmohan Singh in New York on September 27.
With around $5 billion at stake in four deals in the offing, military trade form the core of ties between the two nations.
New Delhi and Washington are also close to finalising contracts for 22 attack and 15 heavy lift helicopters and 145 ultra light howitzers.
Price negotiations
Price negotiations are under way for the purchase of 22 Apache attack helicopters for the IAF, which is also finalising contract for buying 15 Chinook heavy lift helicopters.
The US companies have emerged as the lowest bidder for the two contracts, beating stiff competition from Russia.
In fact, the two helicopter competition also reflects how the US is fast catching up with Russia as it has become one of the fast growing military suppliers to India.
Till as late as 2008, there was negligible arms sale from the US to India. But in the last five years, American firms have bagged deals worth $8 billion.
The biggest buyer has been the IAF, which has got six C-130J Super Hercules and C-17 Globemaster III transporters.
Future deals
The navy, too, purchased eight stateof- the-art long-range maritime reconnaissance aircraft P8Is from Boeing and is mulling purchase of four more.
The army is awaiting purchase of 145 ultra light howitzers, M777 guns of BAE Systems.
Sources said the contract can be sealed within this financial year.
Defence ministry officials claim that while the US companies have managed to deliver equipment within the stipulated deadlines, the military ties with Washington come at its own price.
The free flow of transfer of sensitive technology from the US is a big problem because of its foreign policy sensitivities.
The US for long has been pushing India for signing intrusive agreements like logistics support pact or the Communications Interoperability and Security Memorandum of Agreement (CISMOA) enabling interdependence on each other.
The US is eying the Indian market in a big way and is willing to supply an entire spectrum of technology, which is reserved only for its close friends.
Days before senior Pentagon functionary Ashton Carter arrived in New Delhi earlier this week, the defence ministry cleared purchase of six C-130 J Super Hercules special operations aircraft for the Indian Air Force.
The deal, worth around Rs 4,000 crore, might well be the first in the series of big contracts lined up to be signed with the US in the coming months.
US deputy secretary of defence Ashton Carter was upbeat after his interactions with Indian security establishment as his visit had served the purpose of giving a much needed push to weapon sales to New Delhi.
He assured that the stumbling blocks in the way in the form of bureaucratic hurdles would be overcome by both the sides.
Carter's visit has set the stage for meeting between US President Barack Obama and Prime Minister Manmohan Singh in New York on September 27.
With around $5 billion at stake in four deals in the offing, military trade form the core of ties between the two nations.
New Delhi and Washington are also close to finalising contracts for 22 attack and 15 heavy lift helicopters and 145 ultra light howitzers.
Price negotiations
Price negotiations are under way for the purchase of 22 Apache attack helicopters for the IAF, which is also finalising contract for buying 15 Chinook heavy lift helicopters.
The US companies have emerged as the lowest bidder for the two contracts, beating stiff competition from Russia.
In fact, the two helicopter competition also reflects how the US is fast catching up with Russia as it has become one of the fast growing military suppliers to India.
Till as late as 2008, there was negligible arms sale from the US to India. But in the last five years, American firms have bagged deals worth $8 billion.
The biggest buyer has been the IAF, which has got six C-130J Super Hercules and C-17 Globemaster III transporters.
Future deals
The navy, too, purchased eight stateof- the-art long-range maritime reconnaissance aircraft P8Is from Boeing and is mulling purchase of four more.
The army is awaiting purchase of 145 ultra light howitzers, M777 guns of BAE Systems.
Sources said the contract can be sealed within this financial year.
Defence ministry officials claim that while the US companies have managed to deliver equipment within the stipulated deadlines, the military ties with Washington come at its own price.
The free flow of transfer of sensitive technology from the US is a big problem because of its foreign policy sensitivities.
The US for long has been pushing India for signing intrusive agreements like logistics support pact or the Communications Interoperability and Security Memorandum of Agreement (CISMOA) enabling interdependence on each other.
The US is eying the Indian market in a big way and is willing to supply an entire spectrum of technology, which is reserved only for its close friends.