International Military Markets & Budgets - Asia, Australia & Pac Rim/Eurasia

Source: ShinMaywa Industries, Ltd.


INDIA LOOKS TO CEMENT DEAL FOR US-2I AMPHIBIOUS AIRCRAFT
Thursday, February 26, 2015

Source: ShinMaywa Industries, Ltd.


NEW DELHI - India is looking to ink an agreement for the acquisition of at least 12 ShinMaywa US-2i amphibious aircraft from Japan. The government's highest military procurement decision-making body, the Defense Acquisitions Council (DAC), will take up the proposed deal on February 27 and determine whether or not the joint working group should proceed with negotiations. The aircraft would be assigned to the Indian Navy and would come with a price tag of around $1.3 billion. The previous center-left Congress-led government sought to wrap up the deal in 2014, but was booted out of office in national elections held in the early summer. The new right-leaning government of Prime Minister Narendra Modi came into power vowing to upgrade the capabilities of the Indian armed forces, but still required time to study each and every outstanding procurement requirement.

With Japan having lifted its self-imposed embargo on defense-related exports last year, India - which shares Tokyo's concerns at the growing strength and regional ambitions of China - is now looking to partner with the Japanese on multiple defense projects (including submarines). Previous consideration for the US-2i amphibians involved the possibility of stripping them of their information friend or foe (IFF) systems in order to ease the passage of the sale. With the conservative government of Shinzo Abe having lifted Japan's arms embargo this no longer appears to be a necessity.

Source: The Times of India
Associated URL: http://timesofindia.indiatimes.com/india/Wary-of-China-India-and-Japan-set-to-forge-aircraft-deal/articleshow/46375098.cms
Author: D. Darling, Asia Analyst 
 

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