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.