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US $4.1 Billion Purchase of Boeing C-17s has offsets valued at $1.2 billion
Written by Ganesh   
Wednesday, 08 June 2011
New Delhi: The government of India's Cabinet Committee on Security - chaired by Prime Minister Manmohan Singh - has given the go-ahead to purchase 10 Boeing C-17 aircraft, valued at more than $4.1 billion. The committee also approved the future purchase of 4 additional C-17s.

The deal comes with an offset requirement valued at $1.2 billion. This offset is to facilitate India's domestic capability to expand its own defense manufacturing prowess.

Boeing reports that each plane supports 650 suppliers across 44 states in the U.S., and that this order will support Boeing’s C-17 production facility in Long Beach, California for an entire year. The transaction is valued at approximately $4.1 billion, all of which is U.S. export content, supporting an estimated 22,160 jobs.

Once delivered, the Indian Air Force will be the owner and operator of the largest fleet of C-17s outside of the United States. The Indian Air Force will use the C-17s to modernize India's armed forces with new cargo capabilities. With a payload of 164,900 pounds, the C-17 can take off from a 7,000-foot airfield, fly 2,400 nautical miles, and land on a small, austere airfield in 3,000 feet or less.

While the aircraft constitute the centerpiece of this landmark acquisition, the total procurement is much more comprehensive. In addition to ten C-17s, the IAF will acquire state-of-the-art aircrew and maintenance training, support and maintenance infrastructure, a wide array of spares and repair parts, technical assistance and unique aircraft modifications specific to the IAF.

"This is testament to India’s appreciation of U.S. technology and confidence in the United States as a long-term defense sales partner. This largest-ever Indian purchase of U.S. defense technology we hope will be just the beginning of much more to come," said Ron Somers, President of USIBC.

"This sale captures the mutual benefits of the U.S. - India global partnership.  For India, the sale adds strategic and humanitarian muscle to its defense needs.  The sale grows and sustains 23,000 thousand jobs in America.  For both countries, the sale will further strengthen the strategic ties between the U.S. and Indian armed forces, leading to enhanced cooperation for a safer and more secure region and world," said Timothy J. Roemer, U.S. Ambassador to India.

"U.S. defense sales to India began only a decade ago, at a value of less than $200 million for radar equipment. We have come a long way since then. U.S.-India defense sales today have now crossed the $9 billion mark and continue to grow," said Ron Somers, President of USIBC. "U.S. industry wishes to provide India with a host of cutting-edge products and solutions to meet its emerging defense, security, and counterterrorism needs. Overall, we see the United States and India, the world’s largest free-market democracies, forging a deep and lasting strategic partnership, shaping the destiny of the 21st Century."

"The C-17 Globemaster will broaden India's capability to provide humanitarian assistance to people devastated by natural disasters; to deploy peacekeeping troops around the world to secure peace in dangerous areas; and to evacuate its citizens and others from areas of civil strife anywhere in the world.  This is indicative of the growing military and humanitarian ties between our two democracies. From joint training exercises to defense sales and ship visits, the United States is committed to sharing expertise and cutting-edge technology with India, and to do so in a way that has economic benefits for both India and the United States. India is a leader in maintaining regional stability in South Asia, and a partner in promoting peace and economic growth," Timothy J. Roemer said.

In addition to the U.S. Air Force, the C-17 is currently in service with the British Royal Air Force, the Royal Australian Air Force, the Canadian Forces, NATO, Qatar, and the UAE.

 
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