Japan has set up an agency to manage international defense trade, especially the Indian Navy order for ShinMaywa US-2i amphibious aircraft, after the loss of the Australian submarine order.
The delayed approval for the acquisition of the M-777 ULH means that India will have to bear a much higher price because of the weaker rupee.
In purely dollar terms, the new price represents a 37 percent hike in the cost of the offer to India, but would effectively be even higher given the fall in the value of the rupee against the dollar since 2010.
