India signs weapons deal worth nearly $2bn with Israel

The deal will see state-owned Israel Aerospace Industries provide India with an advanced defence system of medium-range surface-to-air missiles, launchers and communications technology.

NEW DELHI // India will buy nearly US$2 billion (Dh7.35bn) worth of weapons technology from Israel in the “largest defence contract” yet signed by the military exporter.

State-owned Israel Aerospace Industries will sell India medium-range surface-to-air missiles defence system with launchers and communications technology, the company said.

The “mega” missile agreement is “considered to be the largest defence contract in Israel’s defence industries’ history”, a statement on Thursday said.

The Israeli firm will also supply a naval defence system including long-range surface-to-air missiles for the INS Vikrant, India's first indigenously built aircraft carrier.

Israel Aerospace Industries said some components will be assembled in India, in line with prime minister Narendra Modi’s push to reduce reliance on costly imports.

Mr Modi’s government has raised the limit on foreign investment in the defence sector and encouraged tie-ups between foreign and local companies under a Make In India campaign.

India – the world’s largest defence importer – has been investing tens of billions in updating its Soviet-era military hardware to counter long-standing tensions with regional rivals China and Pakistan.

India has signed several expensive defence deals since Mr Modi’s Bharatiya Janata Party took power in 2014.

Israel is a leading weapons exporter, with sales last year rising to $6.5bn.

India is a top market for its arms, as New Delhi has turned away from Russia for its military hardware.

Last year, India signed a contract to buy 36 Rafale fighter jets from France for $8.8bn after delays and obstacles over the cost and assembly of the planes in India.

*Agence France-Presse