The United States on Monday hailed India's decision to buy military transport planes worth more than $4 billion from US-based aviation giant Boeing, saying it would sustain 23,000 American jobs.

The US reaction came a day after the Indian cabinet approved a long-pending programme to acquire 10 C-17 Globemaster III planes from Boeing.

"This comprehensive purchase will support an estimated 23,000 jobs in the United States," US ambassador Timothy Roemer said in statement.

He said the deal would also provide India with maintenance infrastructure and aircrew training, and that more than 600 American firms would benefit indirectly.

The C-17 advanced airlifter can carry large combat equipment and troops or humanitarian aid across international distances to small airfields, according to Boeing.

India is spending billions of dollars to upgrade its military with hardware imports from Britain, France, Israel, Russia and the United States.