The Japanese manufacturer of US-2 amphibious aircraft operated by the Self-Defense Forces has entered talks with multiple Indian firms to set up a joint company in the event Tokyo and New Delhi reach agreement on joint production of the plane, sources said.

The two sides have stepped up talks over potential US-2 shipments to India since Japan eased its rules on exports of defense equipment and technology in April last year.

If the talks go without a hitch, it will be the first time for Japan to export already assembled defense equipment to a foreign country.