Indian cabinet approves military chopper deal
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NEW DELHI: India cleared on Tuesday a $2.5 billion deal to buy 37 military helicopters from aviation giant Boeing, on the eve of Prime Minister Narendra Modi’s visit to the United States.
Mr Modi’s government is in the middle of a multi-billion dollar upgrade of its Soviet-era military hardware, partly to keep up with neighbouring rival Pakistan and big-spending China.
The cabinet cleared the purchase of 22 Apache helicopters and 15 heavy-lifting Chinook choppers, a long-pending deal that was discussed during US Defence Secretary Chuck Hagel’s visit to India last August.
Also read: Airbus and Mahindra to make military choppers in India
“The cabinet committee on security has given the green signal for the helicopters. The deal is worth $2.5 billion,” a government source said.
Since his sweeping election victory last May, Mr Modi’s government has approved a string of military projects that had stalled under the previous left-leaning Congress government, in part over corruption scandals.
Mr Modi has also worked to shore up regional alliances since he came to power in India, which has a longstanding territorial dispute with China over a remote Himalayan region.
The nationalist premier wants to end India’s status as the world’s number one defence importer by instead manufacturing defence equipment locally.
His government has lifted the cap on foreign investment in the defence industry to 49 per cent and pushed tie ups between foreign and local companies.
The deal comes as Mr Modi heads this week to New York, where he hopes to meet US President Barack Obama ahead of the United Nations General Assembly.
He also travels to Silicon Valley on the West Coast, seeking to promote his country as open for business to help revive the Indian economy.
The deal for the Apaches was “hybrid”, with one contract to be signed with Boeing for the helicopters and the other with the US government for its weapons and radars, according to the Press Trust of India news agency.
Published in Dawn, September 23rd , 2015
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Comments (120) Closed
Sep 23, 2015 06:53am
Pakistan will get headache now and they will start to talk why peace is important in the region
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Sep 23, 2015 07:18am
No need for arms. The moneys could be used for infrastructure development.
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Sep 23, 2015 07:18am
@Sunil,
Cut it out man. We just spent USD 2.5 on toys that we could have done without. Imagine that money going into building research universities in India and going for better primary and middle school infrastructure.
This is a lose-lose proposition where both nations are bleeding and the Russians, Chinese, Europeans, and and the US are laughing their way to the bank!
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Sep 23, 2015 07:30am
To eliminate poverty is important but India can buy helicopters if they have money
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Sep 23, 2015 07:32am
Just helicopters , no big deal
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Sep 23, 2015 07:38am
@pk If that was the case dude, there wouldn't have been any borders. Please be realistic!
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Sep 23, 2015 07:51am
@ratan mia
Yes it is big deal because the moneys could be spend for the infrasture development. ..will create more jobs in India.
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Sep 23, 2015 08:00am
@pk Well if you compare the ratio of money spent on defence than ratio spent on social development, you will find it to be one of the lowest in whole of the world.
And if we don't maintain a minimum credible military capability then be sure there will be no poors in India alive ,whom we could educate and elivate.
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Sep 23, 2015 08:07am
Indian governments priorities should be to reduce defense spending and focus on education, health care and core research.
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Sep 23, 2015 08:08am
@Sunil thats about half a percent of that 500 billion dollar trade USA is talking about.....
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Sep 23, 2015 08:08am
@pk Ok we will see.
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Sep 23, 2015 08:12am
Stupid arm race
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Sep 23, 2015 08:13am
Oh Comeone.. those who saying this money can be used for infrastructure, we already doing that. GOI need to secure us and infrastructures build by us from the internal and external threats..
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Sep 23, 2015 08:14am
what a waste of tax money....
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Sep 23, 2015 08:16am
@pk Both go hand in hand.
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Sep 23, 2015 08:17am
People have become preachers instantly on Indian def expenditure. Suddenly all are finding Poverty and development are important.
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Sep 23, 2015 08:25am
It is part of make in India project, Boeing is investing in India and they are building manufacturing unit. We are expecting in return.
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Sep 23, 2015 08:30am
@Deepak Okey Sir.
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Sep 23, 2015 08:30am
to the people who say that India is spending a lot and should spend on development instead, i would like to point out that everything is important parallely and for your kind knowledge we are spending only 2.5% of our GDP which much lower than many countries.
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Sep 23, 2015 08:45am
This money should be used for infrastructure development of remote areas in India.
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Sep 23, 2015 08:47am
Indian politicians and bureaucracy have a huge appetite for defence related "expenses" and they call it "expenditure"... mind you the request for this procurement was made by Indian government in 2008 i.e. 7 long years ago and it took almost a decade for it to be approved... by the time delivery takes place deal amount may go up significantly accounting for inflation, interest and mark-up... meanwhile poor will get poorer…
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Sep 23, 2015 08:49am
I think its from already approved defence budget.infrastructure development budget is seperate.so dont mix two different departments.
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Sep 23, 2015 08:55am
Not only these choppers India is buying arm drone from our great friend Israel soon.
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Sep 23, 2015 09:17am
India / Pakistan fighting ... > who is earning ----> USA / Russia / China. We may have won war of Independence but lost our mind, wisdon & brain.
Stop this nonsense at once. Politicians of both the countries ( actually one ) are mindless, vision less people so as religious people. In fact, religious fundamentalism has given the chance to these Politicians to play their act.
Better unite and fight with poverty, corruption, unemployment, illiteracy, DE-forestation etc to make life easy for everyone.
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Sep 23, 2015 09:20am
As leader of 1.2 billion people India should his first concern not be getting the poor Indians out of slums and into homes rather than waste the hard and Indian Taxs payers money on American helicopters.
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Sep 23, 2015 09:20am
@Deepak same was the language of Jawaharlal Nehru before 1962
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Sep 23, 2015 09:25am
Instead India should make those !! Why buying ?
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Sep 23, 2015 09:27am
Come on both armies...... We need gas cylinder ,cheaper petrol and thousand of things instead of these war toys. Can we use these heli twice a week for transportation ? We can save lot of money .
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Sep 23, 2015 09:38am
Go India! Thank u Dawn for covering the Indian progress
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Sep 23, 2015 09:47am
@gaurav ₹2000Crore is still a huge money to waste like this, and beside that nobody gave any details of how many 100 Crores is needed for maintainace of those junks! There are over 3000 potholes in Bangalore and one lady got killed by one of those..many Mumbai roads are death trap, I don't know about other part part of the country but I'm sure they are worst in compare to the big cities!
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Sep 23, 2015 09:51am
Thanks Dawn for a good article. Your publication has been the only one in Asia to be realistic; truthful and focused. Coming to the subject the US is arm twisting India to buy these expensive toys to keep the Boeing facility running. What India needs is a Maruti and not a Lamborghini. Modi in his over enthusiasm to kick start Indo US relatioship should not hand over the precious foreign exchange to the US. If there is no way out then the best bet will to be ask the US to give these toys on a 20 year lease. One more aspect is that the past wars have proved that the the Russian machines were doing much better than the Americans. Hence, instead of the Apache the KA52 or MI28 would have filled the gap at half the price. Hope Modi and Doval looking into it seriously.
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Sep 23, 2015 09:53am
@Adnan
its india's problem
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Sep 23, 2015 09:54am
@Deepak
security of nation is paramount
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Sep 23, 2015 09:55am
appache attack helicopters are the best in the world.its important to upgrade old military hardware. Luckily this govt has also made lot of deals which include technology transfer and ultimately it will be made in India
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Sep 23, 2015 09:56am
Those preaching about "using this money for..." poverty alleviation, have you heard about the concept of a budget?
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Sep 23, 2015 10:03am
To achieve super power status and to play in powerful country arena it is important to have strong military. But its high time India should start producing weapons on its own. These weapons will be only to show off and nothing else but this is how world works today
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Sep 23, 2015 10:04am
Don't lesson us. India knows its priority and agenda.
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Sep 23, 2015 10:17am
@Zaffar development without security is mirage...once upon a time Syia and Iraq used to boast good infrastructure and development
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Sep 23, 2015 10:23am
My request Dawn.Apart from reporting who bought what weapons and military strategies, please report good practices and success stories from both sides on various development programme in sectors like social,health,education,economic etc., There is much to learn and understand progress made by both countries which common citizen may not aware off.
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Sep 23, 2015 10:32am
@pk Billion dollars are given this year for infrastructure development, 99 Smart cities project getting billions dollar and Delhi to Mumbai Bullet train is under process.
Every city is getting AIIMS , and many new IIT starting.
most of 4 lane roads of NH are now converted or converting to 6 or 8 lane.
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Sep 23, 2015 10:43am
India and US and Israel are iron brothers.
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Sep 23, 2015 10:49am
The trade agreements between Pakistan and Afghanistan have been shelved. The primary issue was whether the Pakistani government would allow trade from India to cross its territory. According to Afghanistan Deputy Commerce Minister, Muzamel Shinware, it was “illogical and unfair” not to include Indian trade crossing Pakistan into Afghanistan. On the other hand, a Pakistani official commented, “If you bring India on the table, the Pakistan’s answer is a big NO, then the whole thing stops."
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Sep 23, 2015 10:58am
Buying this will bring confidence in Indian Airforce and civilians in the country will feel safer.
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Sep 23, 2015 10:59am
India needs more such weapons/platforms to fight Terrorism. Hope this is enough for people to understand why India is buying them. These are not meant for any country. India is a victim of terrorism and the world is acknowledging it. Our PM is also travelling across the globe to get the support to fight terrorism.
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Sep 23, 2015 11:00am
Money of tax payers.. i think they deserves necessities instead of these gunships.. stupid Arm race..
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Sep 23, 2015 11:06am
M35 are almost obsolete need to upgrade apache certainly great choice.
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Sep 23, 2015 11:08am
pakistan also have the same deal with russia. russia wanna sell to every country they need money...just order, pay and pick up, is russian policy!!
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Sep 23, 2015 11:13am
This arm race will bring nothing in region except poverty , discrimination , mishap , neither leaders will wag a war because both are aware of each others capabilities , and ultimate loss if war is conducted. Leaders of three stat Pak , china & India must sit together resolve issues by dialogue and assist each other in financial , economic issues .and make this region south Asia as a peaceful region like Europe.
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Sep 23, 2015 11:29am
@gaurav "we are spending only 2.5% of our GDP "
Your figure seems wrong mate.It was around 1.7% of GDP but to increase it to 2.5% is a long demand.
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Sep 23, 2015 11:31am
This deal includes option to buy 18 more (7 Chinook and 11 more Apaches)
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Sep 23, 2015 11:49am
@Ahmed USA
When you have a economy which is going to be 4 Trillon in next 7 years. You need to invest in defense to protect it as well.
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Sep 23, 2015 11:49am
The elephant walks at it's own pace
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Sep 23, 2015 11:50am
People of India and Pakistan realise that the arm race will make them poorer and poorer and Americans richer and richer.
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Sep 23, 2015 11:50am
Its not the wastage of the tax payers money but as per the current situation of the world a country can only survive and progress if you can protect yourself. We are now in a better position to defend ourselves against any aggression from China and pakistan, so this deal will bring balance in the south asia.Our economy is rising at the moment and we will achieve our goals till 2020.
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Sep 23, 2015 11:56am
@gaurav just for ur correction , india spending 1.74% of GDP, CHINA 2.4%, Pakistan around 4% , usa around 6% . So, we need to raise our defence spending at least by 1% which could add another $25-30 billion in armoury !!
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Sep 23, 2015 11:57am
We indians are capable of buying such thing to protect our country from pak and china who faught 4 wars with us .so we are indian are try to compete with china and pakistan our own . @pk
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Sep 23, 2015 12:17pm
@Roy Iraq was having very good infrastructure, good roads, education and even equality of women( unheard in muslim countries). But what remained now. To live peacefully you need the fighting capability. Otherwise invadors like of Gazanavi will come and loot every thing. Your proseperity will attarct them and these smooth roads will give them access to your home. That time your education will not help. That had been happening in India for centuries.
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Sep 23, 2015 12:19pm
@Zaffar truly said bro
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Sep 23, 2015 12:20pm
Great! Lets get the best gadgets, machines for our boys.
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Sep 23, 2015 12:21pm
@Ankit Kumar
Just making comments without substantiating with facts.
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Sep 23, 2015 12:24pm
Good, will bolster our force's peace time activities.
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Sep 23, 2015 12:24pm
Modi will invest 2.5 billion but trust me.....wait and see he will attract 10 times more via investment.He is very clever and very patriotic. Every country needs a leader like Modi for prosperity and growth...
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Sep 23, 2015 12:26pm
it is unfortunate that such huge amounts are being used for useless hardware - whereas 80% of the nation does NOT have access to basic toilets. I wish both countries Reduce their Military Spending and use it for the betterment of their people and not to create jobs in Other countries. this 2.5 billion is hard earned tax money from hundreds and millions of people
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Sep 23, 2015 12:57pm
Those who are advising India to spend less on defense must know that ancient India was known as Golden Bird due it's prosperity and world trade was dominated by India at that time. It was a peaceful country so it was looted and plundered by foreign invaders for thousands of years. They left only after looting everything they can and that made India a poor nation.
Now India is rising from it's ashes. It has made incredible progress on economic and social front. Now we don't want history to repeat itself and let our country looted again by evil forces. This time we want to be fully prepared and for that strong defense is a necessity.
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Sep 23, 2015 01:04pm
Power play between India Pak or America Russia....both country stop buying hardware and more concentrate on there core like healthcare and infrastructure development......both country should resume there dialog and have peaceful relationship with each other....that actually help common man...
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Sep 23, 2015 01:09pm
Hope Russians get the right message. Decide on whose side you are on.
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Sep 23, 2015 01:14pm
@Third Party, we are going to make them in India, if you care to read the news again and confirm from other sources as well.
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Sep 23, 2015 01:16pm
@Shubs, No they haven't. Concepts like Democracy, Parliament are alien to them.
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Sep 23, 2015 01:24pm
hurrah...this will give jobs to the 3 million job applicants for 300 clerk posts in UP!
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Sep 23, 2015 01:39pm
@pk India has more than enough funds for arms and infrastructure because its people and corporates pay taxes honestly.
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Sep 23, 2015 01:51pm
Both our countries can compete each other for buying high tech weapons and let the developed countries maintain their prosperity and maintain our poor status. Hope somebody will rise to save us from this deplorable raise.
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Sep 23, 2015 01:54pm
@Amjad Well said
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Sep 23, 2015 02:04pm
How 27 helicopters cost 2.5 billion dollars? It is almost double the price 27 F 16 sold to other nations. A helicopter costs less than a fighter jet. Really puzzled!
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Sep 23, 2015 02:04pm
Money is influence. A country than can spend more is more useful than a country that is dependent on aid.
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Sep 23, 2015 02:15pm
India spends too less on Defense compared to it's GDP, high time it needs to double this up
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Sep 23, 2015 02:24pm
India is a poor country not because of our defense spending which is just 1.7% of GDP but because of vested interests over national interest and scarcity of resources compared to its population.
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Sep 23, 2015 02:45pm
To all my Pakistani Brothers and Sisters povetry is everey where it also in Pakistan. Do you guys think Pakistan is richest country in world and you dont have Povetry ? Also India dont need advise from others first loook in to your house then spy in neighbours.
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Sep 23, 2015 03:04pm
@Padmakar; also India and Russia are Golden brothers....
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Sep 23, 2015 03:41pm
Weaponisation is a vicious circle. Because India buys Pakistan buys more. India is a large economy and has deep pockets. Defence expenses do not impact India but impacts Pakistan. I think the government of Pakistan should extend the hand of friendship and there will be no better time to do that than NOW. Modi wants to leave his legacy of PEACE and he will walk an extra mile.
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Sep 23, 2015 03:42pm
People from both Pakistan and India have normal relations. In the middle east they work together eat together live together...many have married each others.
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Sep 23, 2015 03:56pm
@Timetostopthis - "people and corporates pay taxes honestly". Honestly??? Only 2 to 3 percent of Indians pay any income tax at all.
http://www.ibtimes.com/how-many-people-india-pay-income-tax-hardly-anyone-1294887
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Sep 23, 2015 04:08pm
Those telling us to spend on Infrastructure, worry about what's happening in your own backyard:
http://www.dawn.com/news/1208624/manchar-lake-toxic-water-dead-fish-fill-asias-largest-freshwater-body
Strangely only 3 comments so far there !!!
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Sep 23, 2015 04:12pm
@Raj - Spend more by all means if it suits your needs. It's good enough pointing out with percentages that USA and China spend more of their GDP on defence but also care to look at their per capita GDP compared to our countries. That proves our poverty is far higher but USA and China have that luxury of spending more!!!
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Sep 23, 2015 04:13pm
seriously it's only helicopters and the US always sells it's hardware with the basic functioning software available.
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Sep 23, 2015 04:16pm
Pakistan is already producing the ATAK gunship chopper in house.
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Sep 23, 2015 04:44pm
@turbo well then you dont know how much a peon can earn in government job. The competition is with a reason. Its better to be peon in government service than a engineer in private sector living in a metro. Last time some peons were caught with 3-4 crore indian rupees. ;)
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Sep 23, 2015 04:46pm
Don't know about defence but this will bring a smile on the face of the babus, their chamchas and their chaprasis!! Do paise bana lain ge!!
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Sep 23, 2015 04:47pm
Money spent on Indian defence budget is not all that waste as some people say... It provides employment to millions of people, helps in disaster management, saves lives in war and peace.... Chinooks will also be used for civilian needs....
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Sep 23, 2015 04:53pm
This is bad news. Arms race being heated up.But the pragmatic ,clever nation can counter such flying elephants with drones.100 drones can be purchased for the price of 1 chopper
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Sep 23, 2015 05:07pm
@SSamy Dont worry, we are purchasing drones from israel at the same time
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Sep 23, 2015 05:08pm
@Muhammed dont worry ,we will slove our problem.we r on the way.
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Sep 23, 2015 05:18pm
Even if India will buy a single bullet people will make hue and cry.."What you are buying bullet don't you believe in teachings of Mahatma Gandhi? Where is your principle of non-violence went.Can you debate such people ?
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Sep 23, 2015 05:19pm
As far as poverty eradication, has anyone been to midwest usa, you feel like in third world country. Homeless ppl, chickens on roads/ backyards, crime etc. and yet they are superpower.
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Sep 23, 2015 05:26pm
@indian sai baba No it's not, one India needs to upgrade and finally 2.5 B-USD for enhancing the trade to 500 B-USD is not a bad deal. Don't forget US is the largest economy and the trade will only funnel in more jobs direct/indirect. Technology exchange will be an icing on the cake.
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Sep 23, 2015 05:28pm
We Pakistanis and Indians are always talking about war because the western nations want us to. If Pakistan and India lived peacefully like the US and Canada, who would they sell the weapons too.
The strategy of keeping us talking about war is a calculated political strategy. Without us buying weapons most major American weapons manufacturers would go bankrupt
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Sep 23, 2015 05:28pm
These are most advanced helicopters and are force multipliers. India also has fleets of Russian M40 etc for decades now. Pakistan is now trying to get the Russian helicopters.
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Sep 23, 2015 05:30pm
@Sunil
It won't be any different from severe diarrhea each time India gets when Pakistan makes any progress on any front.
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Sep 23, 2015 05:38pm
@Satt - But you are debating with yourself!
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Sep 23, 2015 05:41pm
@Indian Proud of you my countrymen I mean you should be nominated for Nobel peace prize
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Sep 23, 2015 05:41pm
You need peace for prosperity..India's defence is for peace..
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Sep 23, 2015 05:43pm
@Deepak and you are indeed propogatimg your thoughts in right forum. I am sure the message is delivered back home and Modi will recognise your efforts what a great countrymen you are
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Sep 23, 2015 05:46pm
@ JAY - You nailed it bro saying this -As far as poverty eradication, has anyone been to midwest usa, you feel like in third world country. Homeless ppl, chickens on roads/ backyards, crime etc. and yet they are superpower.
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Sep 23, 2015 05:51pm
Good news for Pak-Russian relations and the potential deal for Sukhoi jets.
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Sep 23, 2015 05:52pm
@jay - Hope it makes you feel a little better seeing some poverty at least in USA!
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Sep 23, 2015 06:31pm
India taking the US bait!! Pretty soon they will find themselves paying exuberant amounts for maintenance of these toys. Bunkers not toys will be needed in God forbid any conflict.
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Sep 23, 2015 06:59pm
@Sunil Pak has strong strategic defense system to keep India at bay. Be sure, Pak does not need to bother about this if India does not bother about their widespread poverty.
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Sep 23, 2015 07:00pm
waste of money,afer a few years of nonusage they will bcome obsolete.
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Sep 23, 2015 07:27pm
@Padmakar you are right other Indian also think these iron brother's friend ship go long along
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Sep 23, 2015 10:08pm
@Harisingh You have not understood the game plan,just throwing away peanuts we can make big ticket Investments by US
co's in India.And by this game we are showing the American public and politicians we are very much interested in American economy and creating jobs for it's people understood
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Sep 23, 2015 10:21pm
@Techie If you are a real Techie tell me the software you develop where we sell ? so we must also buy something from them
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Sep 24, 2015 02:51am
@Padmakar
Except that U.S. and Israel are a different Iron quality as compared to when it comes to India......I guess nothing can be altered in the make up that is genetically determined!!! No one's fault.
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Sep 24, 2015 03:00am
@Zaffar
It is Pakistan who is fighting terrorism and as a result has suffered huge economic damage and loss of life. Indians are only making silly noise which everyone understands....as long as they can spend their hard cash heavily in buying goods from these countries they are not necessarily going to refute Indian claim.
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Sep 24, 2015 03:05am
@SUNIL
Indeed well said! But once the elephant gets his azz blistered with sores its pace will come to a long halt.
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Sep 24, 2015 03:16am
@Amjad
True...the invaders came and went back with all the gold India had. What they could not find and loot were the items invented in Ancient(Vedic) India ...such as airplanes and plastic surgery tech.
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Sep 24, 2015 08:44am
@ Shaam سے
Yes, dude, there are many borders around the world and there are no arms race.
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Sep 25, 2015 02:10am
@Techie If the terrorism ends then all else will fall in place.
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Sep 25, 2015 02:23am
@timetostopthis Now you are stretching little bit as we all know fair we are in paying taxes. If we were fair in paying taxes then huge amounts money should not have been moved to foreign banks. I hope this government will crack down on tax evaders and black money stashed oversea. If Modi government succeeds then it will give a great push to Indian economy.
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Sep 25, 2015 04:19pm
@Muhammed Please get your facts right before commenting on any forum. It was never 80% and it is not even today.I won't give you the actual details. Please get the facts from an independent source and you will see the difference. Having said this please note Pakistan also is not doing so good but keeps on buying defence equipment with the money which it does not have.At least India has cash to pay for the equipment.
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Sep 25, 2015 05:56pm
@Mr M.Tariq that's why he is in silicon valley. He needs capital to start manufacturing and that will in turn create jobs. He needs investments in infrastructure and that will create jobs as well
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Sep 25, 2015 06:50pm
@Sunil Pakistan is already playing a very proactive role in promoting peace in the region . India , however needs to stop promoting cross border terrorism as well as separatist groups .
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