Japan may agree to allow India to manufacture parts for US-2 amphibian aircraft to conclude a sales deal with New Delhi, a Tokyo government source said Tuesday.

Prime Minister Shinzo Abe may convey Tokyo's intention to approve production of some parts for the aircraft when he meets with India's newly elected Prime Minister Narendra Modi, possibly on Sept. 1, during his visit to Japan, the source said.

In April, Tokyo eased its rules on the sale of defense equipment and transfer of defense technology in the first major overhaul of a decades-long arms embargo.