In previous years, India had a contract for a 7.62mm weapon system that started with three in the final running: the Sig 716, IWI and Caracal 817. With all three rifles meeting the performance requirements, it came down to a bidding war between the three. Sig came in $160 below Caracal, thus winning the contract. This was a less than profitable contract for Sig, but never-the-less they had won it.
The India 5.56mm program goes back several years with numerous trials with the highest quality rifle/names in the industry. Caracal International is based out of Abu Dhabi, UAE, with US offices in New Hampshire and Idaho, as well as, Caracal GmbH located in Suhl, Germany. Caracal contracts can be made out of any locations. Both Sig and Caracal made it down to the final two for the 5.56mm rifle. Like all contracts, once two systems meet the requirements, it all comes down to the who will out bid the other.
This would include their use of proprietary components, high cyclic rate, which causes lower life cycle; a gas vent, which showed up in low level light, and safety issues (i.e. the need for a firing pin safety). Both gentlemen are also responsible for the Sig 716, MCX and MPX series. Both men went to Caracal, UAE and were tasked with making a rifle that was superior to that of both the HK416 and Sig 516. A task accomplished by the creation of the Caracal 816 series. They made improvements that would simplify the operating system and to lesson felt recoil. They would also go on to make the Caracal 817 rifle chambered in 7.62x51mm. This rifle also competed in the first India contract, which Sig ultimately won, because of price.