The Indian Navy is reportedly planning to buy 12 Utility Seaplane Mark 2 (US-2i) amphibious aircraft from Japan-based ShinMaywa Industries.
The deal is expected to be valued at around $1.65bn, reported The Hindu Business Line.
Both the countries have signed a deal to expedite the export of amphibious search-and-rescue (SAR) aircraft to India.
The two countries have signed an agreement pertained to the transfer of defence equipment and technology co-operation, during the Japanese Prime Minister Shinzo Abe’s visit to India in December, according to sources.
The sources were quoted as saying: "The agreement provides a framework to enhance defence and security co-operation by making available to each other, defence equipment and technology necessary to implement joint research, development and production."
ShinMaywa will initially deliver two US-2is to India, and the remaining ten aircraft will be produced in the country, under technology transfer arrangements with an Indian partner.

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By GlobalDataThe company has already started negotiations with some Indian firms, such as Mahindra Defence, Hindustan Aeronautics, Tata Aerospace, L&T and Pipavav Defence to assemble the aircraft in the country.
Around seven US-2s are currently in operation with the Japan Maritime Self Defence Force.
Both countries have also signed another deal over security measures to protect classified military information.