NEW DELHI, July 30 (UPI) -- Britain's biggest defense manufacturer, BAE Systems, has inked a $784 million deal for the sale of 57 Hawk jet trainers to India.
The deal was announced by British Prime Minister David Cameron during a visit to New Delhi.
The contract includes an additional $313 million of work for Rolls Royce, which will assemble the Adour Mk871 engine that is used by the jet trainer.
The deal will see 40 of the aircraft delivered to the Indian air force and the remaining 17 for the Indian navy. All of the jet trainers will be assembled in India by Hindustan Aeronautics Limited.
BAE and Hindustan Aeronautics Limited have worked together in previous Hawk orders.
Defense News reported that the Indian air force is already in the process of taking delivery of 66 Hawks signed for in a deal earlier this decade.
The $1.45 billion deal followed 18 years of negotiations.
"The first of those aircraft were supplied directly from the United Kingdom with the remainder being built under license by Hindustan Aeronautics at its Bangalore facility," Defense News reported.
The new order highlights the importance of India as a home market to BAE.
"BAE Systems is committed to developing a domestic business in India and will continue working with industry in India to develop further capabilities in the defense and security sectors," said Dick Olver, BAE's chairman.
India is one of several nations where BAE is establishing what it terms a home market. Other countries where the company has a significant showing include Saudi Arabia, the United States, Sweden, South Africa and Australia.
Earlier this year, BAE launched a joint venture with Mahindra and Mahindra, pushing the domestic sale of mine-protected vehicles.
"BAE will also use the joint venture if it secures a major 155mm howitzer contract for which it is competing to equip the Indian Army," the London-based Daily Telegraph newspaper reported.
It said BAE was also interesting in expanding in the marine sector and was in contact with potential warship support partners.
As a result of the new six-year deal, experts anticipate 200 jobs to be created in Britain.
"This is an outstanding example of India-U.K. defense and industrial partnership, and this agreement will bring significant economic benefits to both our countries," the British prime minister said in a statement during his visit.
The Indian air force has been facing a major crisis in training its pilots with its fleet of basic trainers ground after a series of crashes, the Economic Times reported.
