Indian cabinet agreed on Monday to an over $4bn deal contract to purchase military transport aircrafts from aerospace firm Boeing. According to officials, this was India’s biggest defense deal with a US contractor. The deal for C-17 Globemaster III aircrafts, meant for carrying heavy equipment, was approved during a government’s cabinet committee meeting on security matters, said a senior government official. The defense ministry refused to talk about the contract but the official, who requested to stay anonymous, told the media that the cabinet had given clearance to purchase 10 C-17 planes in what would be a government-to-government sale. In January 2009, India had signed a $2.1 billion deal with Boeing to buy six maritime surveillance aircraft for its navy.
According to think tank Stockholm International Peace Research Institute, India has been the world’s biggest importer of weapons for the last five years. The country has increased its military spending this year to 1.65 trillion rupees ($36 billion) from 1.47 trillion rupees last year.