India buys Lockheed planes, US sees breakthrough

[tigershark]

UPDATE 2-India buys Lockheed planes, US sees breakthrough
ue Feb 5, 2008 7:44pm EST

(Adds additional background in paragraphs 4-5)

By Jim Wolf

WASHINGTON, Feb 5 (Reuters) - India has agreed to buy six Lockheed Martin Corp (LMT.N: Quote, Profile, Research) C-130J military transport planes in a breakthrough deal with the United States worth about $1 billion that opens a door to closer strategic ties, U.S. officials said on Tuesday.

India and the U.S. signed an agreement on Jan. 31 for Lockheed to start delivering the four-engine Super Hercules turboprop aircraft in 2011, said Bruce Lemkin, who handles U.S. Air Force international affairs.

The deal marks a major shift in weapons-buying policy by India, which for decades has relied heavily on Russian arms and transport aircraft.

The United States has been eager to boost strategic ties with India as a hedge against China's military clout.

Nicholas Burns, the No.3 U.S. State Department official whose retirement was announced last month, wrote late last year that in reaching out to India, the United States was betting the planet's future lay in democracy and market economics rather than "despotism and state planning," an apparent swipe at communist-ruled China.

Full story
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN0522040220080206

[Webmaster]

You could also say it's a breakthrough for India's contribution in the development program for a Indo-Russian medium transport aircraft.

[Raptor]

Interesting. It seems like everybody's craving India's attention now. 

[Webmaster]

Annual economic growth of 10% and huge military to modernize. 

Heck, I'm even getting nervous about India and China, I guess it's even worse for you guys.

[Raptor]

10%? Whoa. I thought they were growing fast but this is overboard. I'm not nervous, webby i'm afraid