Howitzers deal to bring over $200 mn investment in India

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The decision to acquire 145 pieces of M777 Ultra-light Howitzers from the US under a government to Government deal, would see its manufacturer BAE Systems investing over $200 million here, which will give a boost to the Government’s ‘Make in India’ initiative. The investment will be part of the 30 per cent offset policy. It envisages investing in about 40 Indian defence suppliers with an emphasis on the Defence PSUs and the MSME (Medium, Small & Micro Enterprises) sector. It also offers to establish an Assembly Integration and Test facility for the weapon system in India in partnership with an Indian industrial company. “In discussion with the US government, BAE Systems has developed a strong case with a fully compliant offset proposal, which meets India's offset objectives, of over $200 million,” Vice President (Business Development and Strategic Planning land and Armament) BAE Systems, John Kelly said.

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