A deal to allow the Indian government to buy 100 billion rupees ($15.3 billion) of the China-made spin-off of Hindustan Aeronautics Ltd., which will be the largest foreign investment by an Indian company in the country’s aerospace sector, has been approved by the government.

The government’s move comes as the Chinese aerospace giant, Hindustans Aeronautical Corp., has been seeking to raise funds to invest in India, which has seen an uptick in investment in aerospace products in recent years.

“It is very significant for the Indian economy,” Finance Minister Arun Jaitley said.

“The government is very, very committed to the aerospace sector and the Chinese are very committed.”

Hindustani Aerospace’s spin-offs will be used for research and development, as well as for the development of more advanced systems.

The deal was announced by the Prime Minister Narendra Modi, who was in China earlier this month for the G20 Summit.

The Prime Minister said Hindusthan Aeronac is looking for an investment partner in India because India is one of the world’s fastest-growing economies and a growing middle class.

“India has become the centre of global aerospace and the world is becoming increasingly aware of the importance of our aerospace sector,” Jaitlyn said.

China is the world leader in the development and manufacturing of airframes and other aerospace products, but it has struggled to attract foreign investors to invest.

It is the second largest aerospace investor in India with a $3.6 billion stake in Hindusta Aeronavale Ltd.

Earlier this year, China announced it was looking to acquire a $1 billion stake.

“We are not only looking for a partner for our business but also to build a strong aerospace sector in India,” Hindustaben said in a statement.

“As a company, we will continue to focus on developing innovative technologies, and we will also support our domestic and foreign partners in this endeavour.”