₹17,000-crore deal approved by Cabinet Committee on Security ahead of Modi’s likely visit to Tel Aviv in June.
Ahead of the likely visit of Prime Minister Narendra Modi to Israel in June, India has approved a deal to jointly develop a medium range surface-to-air missile (MR-SAM) system for the Army in a ₹17,000-crore deal. This is the latest in a series of other variants of SAM systems for the Navy and the Air Force being jointly developed with Israeli help under deals estimated at billions of dollars. The deal is for 200 missiles for five regiments, each getting 40 units. The missile has a range of 50-70 km. “The system will be based on the older Barak system of Israel, which is in use in India. It is being changed
as per requirements.”
The systems will be manufactured in India and would have an 80% indigenous content. The DRDO would play a crucial role in developing the target homing system. Deliveries would begin in 2023.The two countries are also in an advanced stage of negotiations for the purchase of two more long-range Phalcon Airborne Warning And Control System (AWACS). The CCS had approved the deal for additional AWACS last year that is expected to cost ₹7,500 crore. India now operates three Phalcon AWACS with Israeli radars mounted on Russian IL-76 transport aircraft, under a $1-billion tripartite deal with Russia, signed in 2003.At the recent Aero India that India had ordered two IL-76 aircraft to be converted to AWACS.
1) India is the largest buyer of Israeli military equipment and Israel is the second-largest defence supplier to India after Russia.
2) From 1999 to 2009, the military business between the two nations was worth around $9 billion. Military and strategic ties between the two nations extend to intelligence sharing on terrorist groups and joint military training.
3) India is the third-largest Asian trade partner of Israel, and tenth-largest trade partner overall. In 2014, bilateral trade, excluding military sales, stood at US$4.52 billion.