India close to buying Japan-made military aircraft

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"India close to buying Japan-made military aircraft in $1.65 billion deal"
by Sanjeev Miglani
01/28/14

Source:
http://finance.yahoo.com/news/india-close-buying-japan-made-101343827.html

NEW DELHI (Reuters) - India is set to become the first country since World War Two to buy a military aircraft from Japan, helping Prime Minister Shinzo Abe end a ban on weapons exports that has kept his country's defence contractors out of foreign markets.

The two countries are in broad agreement on a deal for the ShinMaywa Industries amphibious aircraft, which could amount to as much as $1.65 billion (996.85 million pounds), Indian officials said on Tuesday.

However, several details need to be worked out and negotiations will resume in March on joint production of the plane in India and other issues.

New Delhi is likely to buy at least 15 of the planes, which are priced at about $110 million each, the Officials said.

"Its a strategic imperative for both sides, and it has been cleared at the highest levels of the two governments," said an Indian military source.

For the moment, a stripped-down civilian version of the US-2i search and rescue plane is being offered to India, to get around Japan's self-imposed ban on arms exports. A friend or foe identification system will be removed from the aircraft, another defence official said.

The two countries are discussing assembling the aircraft in India, giving India access to Japanese military technology, Indian Prime Minister Manmohan Singh has said.

The plane has a range of over 4,500 km (2,800 miles), which will give it reach far into Southeast Asia from the base where the aircraft are likely to be located, in the Andaman and Nicobar island chain that is near the western tip of Indonesia.

The two governments have set up a joint working group that will meet in March to consider plans to either set up a plant in India to assemble it under licence by an Indian state manufacturer.

The plan is to deliver two aircraft and then assemble the rest of the planes with an Indian partner, the military source said.

The deal lays the ground for a broader Japanese thrust into India, the world's biggest arms market dominated for long by Russia but also now buying hardware from Israel and the United States.

"There is a whole amount of defence-related cooperation, between India and Japan," said Gautam Bambawalle, an Indian foreign ministry official responsible for North Asia.

"We want Japanese technology, we want Japanese capital investment into India."

WEEKEND TRIP

India's navy is also interested in Japanese patrol vessels and electronic warfare equipment as Tokyo moves further along in easing its ban on military exports, the Indian officials said.

Abe discussed the aircraft deal with Singh during a trip to New Delhi last weekend as ties rapidly warm between the two nations at a time when both are embroiled in territorial disputes with China.

"Our Joint Working Group on US-2 amphibian aircraft has met to explore the modalities of cooperation on its use and co-production in India. More broadly, we are working towards increasing our cooperation in the area of advanced technologies," Singh said.

Abe is seeking a more assertive military and national security posture for Japan, whose post-war constitution, written by U.S.-led occupation forces, renounces war and a standing army.

Abe's government vows to review Japan's ban on weapons exports, a move that could reinvigorate struggling defence contractors like Mitsubishi Heavy Industries Ltd and Kawasaki Heavy Industries Ltd.

Mitsubishi Heavy is in advanced talks to supply parts for the F-35 stealth fighter to Britain's BAE Systems, in what would be the first involvement of a Japanese manufacturer in a global weapons programme, according to people with knowledge of the discussions.

India is a top market for defence hardware, buying some $12.7 billion in arms during 2007-2011, according to the Stockholm International Peace Research Institute (SIPRI), everything from basic military goods to an aircraft carrier.

New Delhi been trying to build up a domestic manufacturing industry and has leaned on foreign suppliers to consider transfer of technology or joint production as a condition for placing orders.

(Additional reporting by Tim Kelly in Tokyo; Editing by Raju Gopalakrishnan)
 

kaiserbill

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Good luck Japan, and above all, I hope you have the patience of a saint.

You'll need it.

And..

The deal lays the ground for a broader Japanese thrust into India, the world's
biggest arms market

Say what?
 

Grey Havoc

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http://the-japan-news.com/news/article/0001720496

Abe, Modi talk on export of MSDF aircraft, trains to India

7:58 pm, November 15, 2014



Jiji Press

BRISBANE, Australia (Jiji Press) — Prime Minister Shinzo Abe and his Indian counterpart, Narendra Modi, have agreed that the two countries will accelerate talks on proposed exports of the Maritime Self-Defense Force’s US-2 amphibious rescue aircraft to India.

Abe and Modi, meeting here Friday, also agreed that Japan and India will hold a meeting of their vice foreign and defense ministers at an early date to enhance bilateral security cooperation.

Abe said Japan also wants to hold a bilateral meeting of defense ministers.

This was the second summit meeting between Abe and Modi since talks held in Tokyo in September.

Abe underlined the importance of promoting multilateral security cooperation between Japan, India, the United States and Australia to counter China’s rise.

Abe told Modi that he is boosting efforts to construct a stable relationship between Japan and China, referring to his meeting with Chinese President Xi Jinping held in Beijing on Monday, their first summit since they took office.

Abe said Japan plans to double investment in India and the number of Japanese companies operating in the South Asian country.

On a high-speed railway project in India, Abe said he expects India to become the first country outside Japan to operate a Shinkansen bullet train system.

The two leaders also agreed to boost cooperation to help both countries become permanent members of the U.N. Security Council. They also agreed to promote negotiations on a bilateral nuclear cooperation pact.

Abe, Zuma to promote N-talks

Abe and South African President Jacob Zuma agreed Friday to promote negotiations on a bilateral nuclear cooperation treaty.

Japan can contribute to nuclear and other infrastructure improvement in South Africa using its safe, advanced technologies and through personnel training, Abe told Zuma in a meeting held here.

Abe and Zuma also agreed to work closely to produce results for U.N. Security Council reform next year, the 70th anniversary of the foundation of the United Nations.



The two leaders underlined the need to boost cooperation in the fight against Ebola, terrorism and natural disasters.
 

Grey Havoc

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https://www.flightglobal.com/news/articles/japan-aerospace-shinmaywa-stays-after-india-us-2-d-453978/
 
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