Prime Minister welcomes £700 million Hawk deal

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Prime Minister David Cameron and Business Secretary Dr Vince Cable have witnessed an agreement signed between BAE Systems, Rolls Royce and India's leading aerospace company, Hindustan Aeronautics Limited (HAL), to supply 57 Hawk trainer aircraft to India.

The deal is worth around £700 million, of which over £500 million is for BAE Systems and up to £200 million for Rolls Royce. It will support over 200 jobs in the UK, although the Hawk aircraft will be not be built in the UK. It was announced at the HAL complex in Bangalore, southern India, as the centrepiece of a three-day visit to India by one of the most significant UK delegations ever to visit, led by the Prime Minister and including senior Cabinet ministers, and business leaders. The aim of the visit is to launch an enhanced partnership with India, a central plank of the coalition Government's foreign policy, of which defence cooperation is one part Prime Minister David Cameron said: "I am delighted to witness the agreement between HAL and BAE Systems and Rolls-Royce. This is an outstanding example of India-UK defence and industrial partnership, and this agreement will bring significant economic benefits to both our countries. It is evidence of our new, commercial foreign policy in action." Today's agreement to supply Hawk trainer aircraft follows on from a previous agreement in 2004 to supply 66 Hawk aircraft to India. BAE Systems chairman Dick Olver said: "BAE Systems is extremely pleased to have secured this follow-on order for Hawk. It reflects the long-standing successful relationship between BAE Systems and HAL and the importance of solid Government support. We are justifiably proud of this continued success for Hawk, the world's most successful advanced jet trainer."