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India to order European warplanes in $11 billion defense deal

The best efforts of the United States' diplomatic and corporate lobby failed to persuade India to purchase warplanes from Boeing ( BA ) or Lockheed-Martin ( LMT ), news sources reported on Thursday.

An announcement came from the U.S. Embassy located in New Delhi, expressing the government's "disappointment" that American manufacturers "were not selected for procurement," Bloomberg wrote.

According to the financial news site, Dassault Aviation of France and the multi-nation EADS conglomerate are now the primary firms in the running for the contract. The Indian government also rebuffed overtures from the Swedish firm Saab, which produces both cars and the Gripen jet fighter, and Russia's OAO state-owned firm.

Currently, the Indian Air Force's fighter fleet is primarily composed of antiquated Russian MiG-21 fighters and Dassault Mirage 2000 aircraft.

The past few years have seen India spend $4 billion on American arms and military equipment, and analysts project that India will expand its military purchases in the coming decade. As its economy and population both grow, India's rivalry with China may worsen. To the west, Pakistan remains a volatile crisis point.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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