India signs 1.4 US million air defence deal with Israel

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India has signed a 1.4 million dollar air defence deal with Israel for the purchase and joint development of an air defence system.

The Israel Aerospace Industries (IAI) has officially acknowledged that the defence deal between the two nations was signed on February 27.

However, Indian Defence Ministry is yet to confirm the deal officially.

According to business daily ‘Globes’, under this deal, Israel will create and manufacture sea-borne and shore-based systems against missile attacks on India.

India itself has achieved success in developing a powerful missile in the same class. The Defence Research and Development Organisation (DRDO) has recently been successful in test firing Advance Air Defence (AAD) missile. India is currently Israel’s largest arms buyer.

The two sides have even discussed on the schedule of payments. It has been agreed that part of the payment for the systems will be made during the development period and the balance will be paid during the 66-month delivery period, which is slated to begin 90 months from the date the advance payment is received.

The IAI is also likely to obtain military or aviation products and services from India. It is said that Israel will invest an amount of almost 30 per cent of the contract in Indian defence companies.

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