Cameron hails £700m Indian aircraft deal

Prime Minister David Cameron has pointed to a £700m deal to supply India with Hawk trainer aircraft as an "outstanding example" of the UK’s new commercial foreign policy.

The agreement between BAE Systems, Rolls-Royce and Indian aerospace company Hindustan Aeronautics Limited (HAL) will see the British firms supply India with 57 Hawk trainer aircraft.

Speaking at the HAL complex in Bangalore, Mr Cameron said the move signalled his Government’s intention to be "messianic" in its pursuit of overseas trade. "This is an outstanding example of India-UK defence and industrial partnership, and this agreement will bring significant economic benefits to both our countries," he said. "It is evidence of our new, commercial foreign policy in action."

The deal was similarly welcomed by BAE Systems, with Chairman Richard Olver expressing his pride at the Hawk project, "the world’s most successful jet trainer."

Accompanying Mr Cameron on the trip, Business Secretary Vince Cable revealed that the Indian Government was also considering the purchase of an unspecified number of Eurofighter Typhoon aircraft. Any such move could be worth as much as £5 billion for over 200 UK companies. It would also support around 5,000 jobs in the supply chain, Mr Cable said.

The UK’s is the world’s second largest supplier of defence equipment. The industry generated £7.2 billion in sales last year.

© Press Association 2010