In what is seen as a major breakthrough, India has reportedly agreed to buy six Lockheed Martin C-130J planes from the United States worth $1 billion. US officials say this deal paves the way for closer strategic ties between the two countries.
The two countries signed the agreement on January 31 according to which, Lockheed Martin would begin delivering the Super Hercules turboprop aircraft from 2011, a US Air Force International Affairs official said on Tuesday.
India has in the past relied heavily on Russia for arms and transport aircraft, and the US, bearing in mind China's military prowess, aims to improve strategic ties with India following this landmark deal.
Indian airmen would begin training in the US before the deliveries start, probably in 2010, US deputy assistant secretary of defence for South and Southeast Asia James Clad said.
The Pentagon had put before the US Congress the possibility of this deal in May 2007, and had put the value of the deal at $1.06 billion.
Lockheed Martin and Boeing, two of the biggest suppliers to the Pentagon, are currently in the midst of a bidding war with European and Russian aviation rivals to ink a potential deal to sell 126 new fighter aircraft to India at an estimated $10.2 billion.