High Cost of US weapon systems- for instance Harpoons?

Discussion in 'Strategic Forces' started by Raj Malhotra, Sep 3, 2010.

  1. Raj Malhotra

    Raj Malhotra Regular Member

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    High Cost of US weapon systems- for instance Harpoons?


    One of the reasons to purchase the weapon systems from US and that also under FMS is that we get them at US Govt purchase price (give or take a few %). Further as US is producer for huge amount of military equipment, these systems are not only sophisticated but also cheaper. Now the funny thing is that most of the systems being purchased “seem” very costly. There are also doubts whether there are any offsets being given by US sellers prescribed under DPP and if there is any effective technology transfer. So what gives? Some examples:-

    Harpoon Sold recently to Pakistan for US$2 million a pop goes upto US$ 7 million for us.
    C-17 goes up from US$ 200-250 million dollars to US$ 500-550 million
    M777 goes up from US$2 million to US$ 6 million a piece etc etc
     
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  3. Yusuf

    Yusuf GUARDIAN Administrator

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    there is a difference between unit cost and also cost that India would pay for the entire gamut including weapons, training, logistics etc for different systems. US products are never cheap though.
     
  4. arps

    arps Regular Member

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    I feel also Harpoon is much costly.But u cant compare with pakisthan, as ours are for Jaguars not for ships(which can be cheaper much).
     
  5. prateikf

    prateikf Regular Member

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    ..:: India Strategic ::.. Defence Industry: India will pay 3.8 percent on all FMS deals with US

    this is exactly the commission paid to sales agents that people frothed in the mouth about and blacklisted many. only in this case the GOVT ofUS itself is the dalal and arbiter! so it gets paid extra acting as sales agent for its own weapons industry and recycles part of this to willing politicians in buyer countries. wow.

    Would have been comic if it wasn't tragic. If only this commonsense of keeping a commision openly was used in other deals, we would have had the 155mm in loads and the Bhim would been roaming the Indian plains... But today we are without any modern artillery with china and pak crawling all over
     
  6. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    If these inflated prices were accepted by Indian Govt then it is not USA's fault. It seems like Indian govt is inflating the prices and pocketing the difference.
     
  7. Yusuf

    Yusuf GUARDIAN Administrator

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    LF, you know its not possible in such deals. FMS rates are the rates at which the US forces buys weapons system and the US govt takes a commission for its expenses. If we were to negotiate for those weapons directly with manufacturers they would add their high margins on it and then india would pay even more for it.
     
  8. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Yusuf every American weapons deal is overpriced by 50% and the stringent terms that go along with it, there must be other alternatives to these weapons.
     
  9. Yusuf

    Yusuf GUARDIAN Administrator

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    All purchases will have to be viewed in perspective, what the terms of the deal are. Training, logistics, maintainence etc... The US has to bother just about unit cost as everything else is in place. Plus the west is usually transparent in deals and their pricing is known.
     
  10. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    This is the prices we will pay until our indigenous efforts start bearing fruit.
     
  11. Raj Malhotra

    Raj Malhotra Regular Member

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    The explanation that there is entire gamut including weapons, training, logistics etc for different systems to be paid for seems a non-starter as other nations will purchase the package. Further Pakistan also bought botht the air launched and ship launched missiles. Further price differential is more obvious if you google for other deals with numerous other nations. Now look at

    US$ 1 Billion for "only" 6 C-130s. Compare it with US$ 50 million for a Il-76, it means that C-130 is 6 times more costly than an aircraft twice its size. If there are some special systems makes all these systems so costly then what are those?
     
  12. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    look at the C-17 deal and the big price difference in that for India, what is being offered for such a large difference???
     
  13. Daredevil

    Daredevil On Vacation! Administrator

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    I don't know where you got the news of $ 1 Billion for 6 C-130s. According to various reports it is $596 million for 6 C-130s. It is more like 100 million per plane.

     
  14. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    1 pak fa = 100 million
     
    Last edited: Sep 3, 2010
  15. plugwater

    plugwater Elite Member Elite Member

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    Kunal sir you still believe we will get Pakfa for 100 million ? We paid more than 100 million even for Su-30. Russian weapons are not so cheap anymore.
     
  16. SATISH

    SATISH DFI Technocrat Stars and Ambassadors

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    All you know is that? C'mon, you need to take into consideration the spares bought, infrastructure, pilot training, support, and everything into consideration. And above all it is not produced in India. Hence the huge labour cost. You need to know why the Americans and the Europeans are keen to enter Indian production lines. It is because of low labour costs here. An F 18 built in US costs $80 mil a peice but the same built in India costs $ 50 mil a peice.
     
  17. SATISH

    SATISH DFI Technocrat Stars and Ambassadors

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    I disagree with that sir. I think a PAK-FA will cost $200 mil a peice and FGFA will be atleast $150 mil a peice.
     
  18. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    I saw on wiki..
    Any link on this..
     
  19. SATISH

    SATISH DFI Technocrat Stars and Ambassadors

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    No Kunal sir. I dont have links. But my assessment for the production costs and the weapons developed for the PAK FA is way over-kill for one peice to cost $100mil in the start. It might cost more sir. But $100 mil is almost impossible.
     
  20. JHA

    JHA Regular Member

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    $100 Mil is just for plane..Other goodies will cost extra...And if Pak-Fa costs $200 mil. then i must say i am a little tempted towards F-35...
     
  21. Agantrope

    Agantrope Senior Member Senior Member

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    Sir, Project is just in initial stages, we are yet to see any cost escalation issues and all. Surely it will be more than $100M. JSF was propagated as $35M flight but now $165M
     

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