Defence group BAE Systems and engine supplier Rolls-Royce have signed a £700m deal to supply India's Hindustan Aeronautics with 57 Hawk training jets.

Over £500m will go to BAE and £200m to Rolls-Royce in the deal that should create about 200 jobs in the UK.

The jets will be used to train pilots in the Indian air force.

The deal was announced to coincide with British Prime Minister David Cameron's visit to India, designed to strengthen relations and boost trade.
'Government support'

Mr Cameron said: "This is an outstanding example of India-UK defence and industrial partnership, and this agreement will bring significant economic benefits to both our countries."

The deal follows an order for 66 Hawk jets by India's air force in 2004.

"BAE Systems is extremely pleased to have secured this follow-on order for Hawk," said BAE's chairman Dick Oliver.

"It reflects the long-standing successful relationship between BAE Systems and Hindustan Aeronautics and the importance of solid government support."

Source: BBC Business