India and the U.S. agreed on Friday to work closely in the development and production of indigenous military weapons in a bid to strengthen defense cooperation between the two nations.

U.S. Defense Secretary Chuck Hagel met with Indian counterpart Arun Jaitley on Friday in which both agreed to step up efforts for the advancement of the Defense Technology and Trade Initiative, the Indian defense ministry said in a statement. The Initiative is intended to boost defense cooperation through joint development and production of military equipment.

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Both sides also agreed to appoint a point person for all defense-related matters.

India has delegated the task to its Secretary in the Department of Defense Production, while the U.S. has selected the Pentagon's Under Secretary for Acquisition, Technology and Licensing, the statement added.

During the meeting, Jaitley told Hagel of India's plans to increase its local production capabilities, which he said is tied with the country's present policies.

To pursue the co-development and co-production of defense equipment, Jaitley said the government has taken steps to increase foreign direct investment (FDI) in the defense sector.

India has already boosted its FDI cap in the defense sector from 26 percent to 49 percent, DNAIndia has learned.

U.S. military sales in India have grown from hundreds of millions in the late 90s to more than US$9 billion in 2008. According to defense research firm IHS Jane's, India was the U.S.' top foreign military arms buyer last year with nearly 70 percent of its defense requirement sourced internationally.

Nevertheless, India appears to be seeking independence and develop its own weapons industry - a mentality Hagel acknowledged as he spoke with reporters on Thursday while on a flight en route to New Delhi.

The talks also reportedly touched on the finalization of a US$1.4 billion contract for the sale of 15 Chinook and 22 U.S. Apache helicopters, with India following up on an order for 39 additional Apaches.

The 39 Apaches are intended to augment India's military forces stationed in the mountains along the disputed border with China, a military official said.

TagsUS, Arun Jaitley, Chuck Hagel, defense cooperation, IHS Jane's, indigenous weapons, Defense Technology and Trade Initiative