India To Approve Deals Worth $3.7b For Indo-Israeli MR-SAM Air Defence Missiles

The missiles will be manufactured by Israel Aerospace’s joint venture in India
India is preparing to approve a series of major defence transactions with Israel valued at around $3.762 billion. The Defence Procurement Procedure Administration, chaired by Defence Minister Rajnath Singh, is scheduled to convene on 23 November to finalise the agreements.
The key components of these deals include extended orders of rockets for the Indian Army and additional Medium Range Surface-to-Air Missiles (MR-SAM) systems jointly developed by Israel Aerospace Industries (IAI) and Bharat Dynamics Limited (BDL). Both the Indian Air Force and the Indian Navy are expected to purchase more than 300 missile units under this new round of contracts.
The MR-SAM, a product of Indo-Israeli cooperation, remains a vital element of India’s air defence network. The system is designed to counter a wide range of aerial threats, including aircraft, helicopters, unmanned systems, and cruise missiles.
It features a sophisticated phased-array radar, a fully networked command-and-control architecture, mobile launchers, and interceptors fitted with advanced radio-frequency seekers. These interceptors are capable of striking multiple targets simultaneously in challenging operational environments, providing a crucial capability for layered air defence.
In line with the government’s Make in India vision, the missiles will be produced domestically by IAI’s joint venture in India. This initiative deepens the technological partnership between Israel and India, ensuring high levels of local content and indigenous capability development.
The Jerusalem-based defence manufacturer has made significant efforts to localise its production processes and supply chains through its Indian subsidiary, Aerospace Systems India (ASI), which was established in March 2024.
ASI, a collaboration between IAI, the Israeli Defence Ministry’s Directorate of Defence Research and Development (MAFAT), and India’s Defence Research and Development Organisation (DRDO), operates as the sole licensed entity dealing in MR-SAM systems within India.
The subsidiary employs a workforce of 50 people, 97 percent of whom are Indian nationals. Located in Delhi with multiple regional branches, the company conducts all its financial operations in Indian rupees, reinforcing its integration into India’s defence manufacturing ecosystem.
The upcoming procurement also includes exploration of additional Israeli missile systems such as IAI’s Air LORS models, indicating India’s broader interest in strengthening its offensive and defensive precision-strike capabilities.
The expansion of Indo-Israeli defence cooperation through joint ventures and local production marks a new phase in strategic alignment, with the MR-SAM program continuing as a prime example of bilateral defence technology transfer and operational synergy.
IDN (With Agency Inputs)
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