India To Buy 10 U.S. Aircraft for $4-Bln

India is close to awarding a $4-billion defense contract to the U.S. to purchase ten C-17 Military aircraft, according to a report in the Associated Press.

An Indian defense ministry official told AP that the New Delhi government has approved the proposal, which still must be signed by both countries.

It will be the biggest defense deal ever between India and the U.S.

Reportedly, US President Barack Obama strongly advocated thi deal during his recent visit to India.

Under terms of the contract, Boeing Co. (NYSE: BA), the aircraft manufacturer, must invest 30 percent of $4-billion (or $1.2-billion) into defense-related industries in India.

The aircraft will be used by India’s defense forces for transporting equipment and other air-lifting operations.

AP reported that India is planning to spend $80 billion over the next decade to upgrade its military.

Ironically, India recently rejected a $10-billion contract for Boeing and Lockheed Martin (NYSE: LMT) to manufacture fighter jets for India’s air force.