Biggest India-U.S. Defense Deal Set To Be Signed

India and the U.S. are likely to sign a $3.5 billion defense deal, the biggest ever between the two countries, according to a report released Sept. 22.

The agreement will see the Indian Air Force buy 10 C-17 Globemaster transport aircraft that are expected to replace the aging fleet of Russian Ilyushin IL-76, the Economic Times newspaper said without citing sources.

The deal, which is in its final stages, is likely to be signed in November when U.S. President Barack Obama visits India.

In February, New Delhi announced a $32 billion defense budget, a 4 percent increase on 2009, when spending was hiked by a quarter as the country seeks to modernize its armed forces.

A top air force official earlier stated that India's air force is just a third the size of rival China's and far short of the aircraft required to meet the security challenges facing the country