India’s cabinet has approved a proposal to purchase $4 billion worth of military aircraft from Chicago-based Boeing Co.
According to an official from India’s defense ministry, the country plans to buy ten C-17 aircraft, a large combat plane used to move troops and cargo internationally. If the agreement is signed by both countries it will be the largest ever defense deal between the two nations.
The official, who could not be named because he wasn't authorized to discuss the subject, says the deal requires Boeing to invest 30 percent of the $4 billion in defense-related industries in India.
The news comes after Boeing and another American defense manufacturer, Lockheed Martin, were rejected for a multibillion-dollar contract to supply fighter jets to the Indian air force.
India is expected to spend $80 billion over the next decade to upgrade its military.