India, Israel sign USD 1.4 billion deal on air defence system

Harinder Mishra

Jerusalem, Mar 27 (PTI) India has signed its biggest
defence deal with Israel for the purchase of a state-of-the-
art air defence system at a whopping cost of USD 1.4 billion
(Rs 7,042 crore).

Israel Aerospace Industries (IAI) has officially
acknowledged that the defence deal between the two countries
was inked on February 27 under which Israel will develop and
manufacture seaborne and shore-based systems against missile
attack on India, business daily 'Globes' reported.

The signing of the deal comes as India is in advance
stage of testing of its own anti-missile shield. The Defence
Research and Development Organisation (DRDO) has already
successfully test-fired its advanced air defence (AAD)
missile.

The two sides have 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 report said.
As per the agreement, IAI has also undertaken to procure
military or aviation products and services from India. It will
invest in defence companies in India up to an amount equal to
30 per cent of the contract.

India is currently Israel's largest arms buyer. PTI