U.S., India to sign $8 bln defence deals: envoy

NEW DELHI Fri Apr 27, 2012 4:44pm IST

Soldiers are silhouetted against the setting sun as they salute facing the national flag in New Delhi January 24, 2012. REUTERS/Parivartan Sharma

Soldiers are silhouetted against the setting sun as they salute facing the national flag in New Delhi January 24, 2012.

Credit: Reuters/Parivartan Sharma

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NEW DELHI (Reuters) - U.S. companies are poised to sign defence deals totalling $8 billion with India, U.S. Ambassador Nancy Powell said on Friday at her first public speech since arriving in New Delhi this month.

Powell did not specify which companies she was talking about or when the deals would be signed, but embassy officials said she was referring to negotiations that include about a dozen Apache helicopters along with engines for Indian jets.

"We are poised to sign an additional $8 billion in direct commercial and foreign military sales," Powell said. "As we share more common equipment, our bilateral defence ties will become stronger."

India is the world's largest arms importer and plans to spend close to about $100 billion over the next 10 years to upgrade its largely Soviet-era equipment.

U.S. companies including Boeing Co, Lockheed Martin Corp and Raytheon Co are some of the contractors looking to grab a share of India's planned military spending.

Industrial conglomerate Honeywell International Inc. is offering engines for the Indian Airforce's Jaguar fighter aircraft.

Powell said improving bilateral trade and investment was her main objective as ambassador, mentioning U.S. concerns about tariff and non-tariff barriers and a new retroactive tax law as obstacles in the relationship.

(Reporting by Frank Jack Daniel and Manoj Kumar; editing by Malini Menon)

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Comments (1)
Shyamaa wrote:
To quote from Cho Ramaswamy’s Thuglak Editorial, the United States is eyeing Indian market for its companies. However, China is waiting for the right opportunity to gobble up Indian territories as it did in 1962. In 1962 just prior to commencement of hostilities Chou-En-Lai the then Chinese Prime Minister visited India and he waltzed with Nehru singing “Hindi-Chini Bye Bye”. Similarly just a couple of weeks back the current Chinese PM visited our country and did more or less the same thing with Manmohan Singh. I expect the expansionist Chinese to initiate hostilities around July this year in the North-East. It would be wise if we give access to our market on a large scale to the US, and enter into a defence agreement with it to keep China at bay. But China which has already infiltrated our country with its agents in the form of Professors at Joy Now Ugly (JNU), and communist politicians (who are more patriotic than the Chinese themselves) would never allow that. Unless the US can make use of Sonia Gandhi and her White Christian background to influence the Indian Government, I don’t see much hope on this front ever.

Apr 29, 2012 9:54pm IST  --  Report as abuse
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