India is expected to buy 12 amphibious rescue aircraft from a Japanese manufacturer.
The Nikkei newspaper reported that the Indian Defence Ministry will agree on Monday to purchase 12 amphibious rescue aircraft from Japanese manufacturer ShinMaywa Industries for $1.5 billion-$1.6 billion.
The two countries have been holding talks over the deal for more than two years, and it would be one of Japan's first sales of military equipment since Prime Minister Shinzo Abe lifted a 50-year ban on weapons exports. This reflects growing defence relations between Japan and India.
Senior Defence Ministry officials said the decision to purchase 12 US-2 aircraft will be taken at a Defence Acquisitions Council meeting on Monday. The deal will be included in a memorandum of understanding to be signed during Indian Prime Minister Narendra Modi's three-day visit to Japan starting on Thursday.
Abe is expected to urge Modi to increase use of high-speed train technology from Japan.