India's current artillery guns are of the late 80s vintage. Successive governments have hesitated from inking another deal because the purchase at that time had led to bribery allegations, contributing to the downfall of the Rajiv Gandhi government.
The decision on the $ 737 million contract comes as a big relief to the US as India had recently signed major defence and nuclear power contracts with Russia.
"India and the US signed a landmark deal for 145 M777 howitzer artillery guns. The Indian industry will partner with the US defense subsidiary of BAE Systems to locally assemble, integrate and test the howitzers, supporting PM Modi's Make-in-India campaign. This deal marks a major step forward in the US-India defense relationship and supports jobs in both our countries," says Richard Verma, US envoy in New Delhi.
The final contract under a direct government-to-government deal is expected to sign within a week and will be a face safer for outgoing US Defense Secretary Ashton Carter. Recently India finalized a proposal to locally make Kamov helicopters, purchased three destroyers and gave the go ahead for two more nuclear power plants.
However, the deal for artillery guns will for the first-time provide synergy between US equipment being used by Indian armed forces. The light howitzer guns of US origin will be transported by US-made C-130J and C-17 heavy lift military aircraft of the Indian Air Force. The primary aim will be to quickly deploy the guns in India's mountainous terrain.