INDIA DEFENCE CONSULTANTS

WHAT'S HOT? –– ANALYSIS OF RECENT HAPPENINGS

ARMS DEAL WITH ISRAEL'S IAI

An IDC Report 

New Delhi, 12 January 2012

 

UPI reports from Tel Aviv that the Israel Aerospace Industries has signed a four-year, $1.1 billion deal with India for aircraft, missiles, unmanned aerial vehicles and intelligence systems.

IAI announced to the Tel Aviv Stock Exchange Monday it had signed the $1.1 billion deal with "an Asian country." without naming the country nor specifying the military systems involved.

But the Globes business daily identified the customer as India and said the systems included missiles, UAVs and intelligence technologies. Other sources said aircraft were also involved but gave no details.

Other deals by India with Israeli companies include:

(a) DRDO signed a $480 million contract on missile development in early 2006.

(b) IAI won a $1.1 billion deal with the Indian Navy in 2009 to provide advanced Barak-8 tactical air-defense missile systems for its warships.

(c) Rafael Advanced Defense Systems secured a $1 billion contract to supply 18 Spyder surface-to-air missile systems by 2012.

(d) IAI sold the Indian Air Force three Phalcon early warning aircraft worth $1.1 billion in 2004.

In March 2011, the U.S. weekly Defense News reported India was preparing to sign a $1 billion order with Rafael for 8,356 Spike anti-tank missiles, along with 321 launchers and 15 training simulators.

India has also expressed interest in Israel's Arrow-2 anti-ballistic missile system jointly manufactured by IAI and the Boeing Co. But the technology transfer may be stalled since U.S. approval would be required.

China was once a promising market for Israeli weapons and electronic systems, but it currently remains largely off-limits, mainly because of the United States, which provides Israel with $3 billion a year in military aid. It had blocked a $1 billion sale of four Phalcon AWACS aircraft to China in 2000, saying that U.S. components were used in the planes, causing annoyance in China.

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