USIBC Hails India's Landmark $4.1 Billion Purchase of Boeing C-17s
"Largest Ever" India Defense Purchase of U.S. Technology Strengthens U.S.-India Ties; Supports Jobs
"This is testament to India's appreciation of U.S. technology and confidence in the United States as a long-term defense sales partner. This largest-ever Indian purchase of U.S. defense technology we hope will be just the beginning of much more to come," said Ron Somers, President of USIBC.
Boeing, headquartered in Chicago, Illinois, is the aircraft manufacturer of the C-17, which is used for rapid strategic airlift of troops and cargo to main operating bases, and forward-operating bases, throughout the world. It can also perform tactical airlifts, medical evacuation, and airdrop missions. The C-17 can transport large payloads and land on short, rough runways. Boeing reports that each plane supports 650 suppliers across 44 states in the U.S., and that this order will support Boeing's C-17 production facility in Long Beach, California for an entire year. The transaction is valued at approximately $4.1 billion, all of which is U.S. export content, supporting an estimated 22,160 jobs. The deal comes with an offset requirement valued at $1.2 billion. This offset is to facilitate India's domestic capability to expand its own defense manufacturing prowess. The government of India's Cabinet Committee on Security also approved the future purchase of 4 additional C-17s.
"U.S. defense sales to India began only a decade ago, at a value of less than $200 million for radar equipment. We have come a long way since then. U.S.-India defense sales today have now crossed the $9 billion mark and continue to grow," said Ron Somers, President of USIBC. "U.S. industry wishes to provide India with a host of cutting-edge products and solutions to meet its emerging defense, security, and counterterrorism needs. Overall, we see the United States and India, the world's largest free-market democracies, forging a deep and lasting strategic partnership, shaping the destiny of the 21st Century."
The U.S.-India Business Council was founded in 1975 at the request of the Indian and U.S. governments to advance U.S.-India commercial ties. USIBC is the premier business advocacy organization representing nearly 400 U.S. and Indian companies, led by its Chairman, Harold McGraw III, Chairman, President & CEO of The McGraw-Hill Companies.UNITED STATES WELCOMES NEWS OF HISTORIC SALE OF TEN C-17 AIRCRAFT TO INDIA
NEW DELHI -- The United States Government welcomed the media reports of the sale of ten Boeing C-17 Globemaster III aircraft to the Indian Air Force (IAF). The acquisition will significantly boost the Indian Air Force’s heavy transport capabilities.
U.S. Ambassador to India Timothy J. Roemer stated: “This sale captures the mutual benefits of the U.S. – India global partnership. For India, the sale adds strategic and humanitarian muscle to its defense needs. The sale grows and sustains 23,000 thousand jobs in America. For both countries, the sale will further strengthen the strategic ties between the U.S. and Indian armed forces, leading to enhanced cooperation for a safer and more secure region and world.”
“The C-17 Globemaster will broaden India’s capability to provide humanitarian assistance to people devastated by natural disasters; to deploy peacekeeping troops around the world to secure peace in dangerous areas; and to evacuate its citizens and others from areas of civil strife anywhere in the world. This is indicative of the growing military and humanitarian ties between our two democracies. From joint
training exercises to defense sales and ship visits, the United States is committed to sharing expertise and cutting-edge technology with India, and to do so in a way that has economic benefits for both India and the United States. India is a leader in maintaining regional stability in South Asia, and a partner in promoting peace and economic growth.”
While the aircraft constitute the centerpiece of this landmark acquisition, the total procurement is much more comprehensive. In addition to ten C-17s, the IAF will acquire state-of-the-art aircrew and maintenance training, support and maintenance infrastructure, a wide array of spares and repair parts, technical assistance and unique aircraft modifications specific to the IAF.
This comprehensive purchase will support an estimated 23,000 jobs in the United States. Over 600 suppliers located in 44 states in America will benefit from the sale.
The C-17 is the workhorse of the U.S. Air Force transport fleet and has proven highly reliable in the harsh environments of Iraq and Afghanistan. The Indian Air Force will use the C-17s to modernize India’s armed forces with new cargo capabilities. With a payload of 164,900 pounds, the C-17 can take off from a 7,000-foot airfield, fly 2,400 nautical miles, and land on a small, austere airfield in 3,000 feet or less.
In addition to the U.S. Air Force, the C-17 is currently in service with the British Royal Air Force, the Royal Australian Air Force, the Canadian Forces, NATO, Qatar, and the UAE.