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India And Japan Solve US-2 Aircraft Price Issue



This video shows you that India And Japan Solve US-2 Aircraft Price Issue.
India and Japan are all set to strike the first-ever defence deal, as the two countries have resolved US 2 aircraft price issue.
In 2014, India decided to acquire 12 US 2 amphibious aircraft for its Navy from Japan. However, talks between senior officials of the two countries suffered a blow as the Japanese manufacturer, ShinMaywa, refused to lower the quoted price of USD 133 million per aircraft. After two years of tough negotiations, New Delhi and Tokyo have announced that they resolved the issue and the Indian Navy will soon receive all the 12 aircraft.
A top Indian Defence Ministry official confirmed the news over the weekend, saying: “Japan has offered a price concession of more than 10% per aircraft from USD 133 million per aircraft to around USD 113 million. The USD 1.35 billion government-to-government deal for US2 aircraft is now ready for finalisation.” The official, who wished to remain anonymous, also said that it would be easier for the Indian Navy to monitor movements of vessels in the Indian Ocean Region (IOR) after the acquisition.
Meanwhile, Indian Navy Commodore (Retired) and senior defence analyst Anil Jai Singh has welcomed the announcement, stressing that the Navy badly required the amphibious aircraft to safeguard India’s interests in the IOR. “Carrying out operational logistics support for the naval units (including ships, submarines and embarked assets) at sea, within the IOR or beyond is an operational gap that exists in the Indian Navy inventory,” added Singh.
Defence experts believe that it is a ‘strategic’ purchase, as India is strengthening ties with Japan as a part of its ‘Look East Policy’. They are of the opinion that it is not possible for India to counter China’s growing influence in the IOR and Pacific Ocean Region without Japan’s help. Singh explained: “The strategic importance of this needs no emphasis. It may be the first military export from Japan since WWII and hence sends out a very significant signal on the depth of the Indo-Japan strategic relationship as well as on the geopolitical dynamic of the Indo-Pacific.”
Both India and Japan showed some urgency in resolving the price issue after China announced in July that it had built the ‘AG600’ – the world’s largest flying boat. Talking to the local media in New Delhi, a senior Navy official said: “Once the potential acquisition of US2 aircraft by India made news, development of the prototype of AG600 became a priority for China. The intended utilisation of the aircraft by China is almost similar to the perceived roles in India. Presence of Indian US2 in the IOR and AG600 of China in the South China Sea may create an interesting military and strategic balance in the area.”
Senior defence analyst with Ernst & Young India Ankur Gupta is confident that the deal will bring the two countries closer than ever to throw a strong challenge to China. “With this positive movement towards the US 2 purchase, these ties will move to the strategic level. Should some part of the platform be manufactured in India, then it will boost local capabilities as well,” said Gupta.

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6 Comments

  • Ramesh Singh says:

    good deal multi roll

  • CA18DETHK says:

    What on earth is Indo-Pacific perspective, is there a comparable geo-political interest such as Indo-Atlantic, Indo-Antartic? This channel is hilarious with its India-centric perspective and its rather out of context name of Global Conflict.

  • Nishant Kumar says:

    That is one ugly aircraft!

  • Gag K says:

    Superb Thanks to Japan now India should negotiate for Technology transfer not only for US2 but other Products also to give Fightback to Chines Substandard Electrical & Electronic goods.

  • Rajkumar Palani says:

    How many of these Aircraft India is buying?
    Edit : wiki says 12-18

  • Ashok Prabhu says:

    Negotiate with Japan to have some of these Amphibian Aircrafts manufactured in India itself.We see a terrific role for these Aircrafts for our Navy as well as the Coast Guard.If we succeed in our negotiations,we will be left with a modern Technology to make these Aircraft in India itself,while at the same time,we get an army of skilled Technicians who can handle these Aircraft.

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