In a significant boost to India-US defence ties, the United States has cleared a $482.2 million (nearly Rs 4,000 crore) military support package for India covering long-term maintenance, sustainment services and logistical support for the Indian Army’s AH-64E Apache attack helicopters and M777A2 Ultra-Light Howitzer artillery systems.
This development comes amid the growing defence spending on maintaining advanced imported military platforms in India while reinforcing Washington’s strategic commitment to strengthening security cooperation with New Delhi in the Indo-Pacific region.
$482 million package split between Apache fleet and M777 artillery support
The approval was formally notified by the Defense Security Cooperation Agency (DSCA), which oversees America’s Foreign Military Sales programme.
News agency PTI reported that the notification published in the US Federal Register on June 17, India has sought separate sustainment packages for two critical defence systems currently operated by its armed forces.
The larger package involves $230 million worth of long-term support services for India’s M777A2 Ultra-Light Howitzers, while a separate $198.2 million package covers sustainment support for India’s Apache combat helicopter fleet. Combined, the two deals amount to $482.2 million.
Why India is spending big on military sustainment
Unlike fresh defence purchases, the newly approved package focuses on long-term operational readiness rather than acquisition of new weapons.
For the M777A2 artillery systems, India has requested support services covering spare parts, repair services, training, technical assistance, logistics support, depot capability development and field service representatives.
India inducted the lightweight M777A2 howitzers through the US Foreign Military Sales route to strengthen artillery deployment, particularly in difficult mountainous terrain along sensitive borders. The artillery systems have become strategically important for rapid deployment in high-altitude operational zones.
Apache helicopters to receive engineering and logistics support
India has separately sought long-term sustainment services for its Apache helicopter fleet, considered among the world’s most advanced attack helicopters.
The Apache package includes engineering assistance, contractor support services, logistics management, technical publications, maintenance support, personnel training and related operational assistance.
Currently, the Indian Army operates AH-64E Apache helicopters for battlefield precision strike missions, reconnaissance and offensive combat support operations.
Boeing, Lockheed Martin and BAE Systems among major beneficiaries
The financial package is also expected to benefit major Western defence contractors already deeply integrated into India’s defence procurement ecosystem. According to the US Department of Defense, Boeing and Lockheed Martin will serve as principal contractors for Apache helicopter support services.
Meanwhile, British defence giant BAE Systems will lead the M777 howitzer sustainment programme.
The deal further talks about how India’s defence modernisation programme continues generating substantial long-term revenue opportunities for global defence manufacturers beyond the initial purchase agreements.
Growing cost of maintaining advanced military systems
The latest US clearance also highlights the important financial reality of modern warfare — maintaining advanced imported defence platforms often costs hundreds of millions of dollars over their operational lifespan.
While India has increasingly focused on indigenous defence manufacturing under the government’s self-reliance push, sustaining imported frontline systems remains a major defence expenditure category.
US says deal strengthens Indo-Pacific security partnership
The US Department of Defense said the proposed sales support America’s foreign policy objectives by strengthening ties with India, which Washington continues to view as a major defence partner in the Indo-Pacific.
The Pentagon said the support package would help India improve its ability to tackle future threats, strengthen homeland defence capabilities and enhance deterrence against regional security challenges.
“It will help improve the security of a major defence partner, which continues to be an important force for political stability, peace, and economic progress in the Indo-Pacific and South Asia regions,” the US Department of Defense said.