In a significant development for India’s air defence and indigenous manufacturing capabilities, the government is poised to approve defence contracts totaling approximately $3.762 billion with Israel. These contracts will focus on the Medium Range Surface-to-Air Missile (MR-SAM) systems, which have been co-developed by Israel Aerospace Industries (IAI) and Bharat Dynamics Limited (BDL).
On November 23, the Defence Procurement Procedure Administration, chaired by Defence Minister Rajnath Singh, is expected to convene to finalize these high-value agreements.
The new contracts will encompass additional orders for rockets intended for the Indian Army, as well as over 300 MR-SAM units earmarked for the Indian Air Force and Indian Navy. The MR-SAM system is a flagship product of the Indo-Israeli collaboration and is vital for India’s layered air defence network, adept at neutralizing diverse aerial threats including aircraft, helicopters, drones, and cruise missiles.
Technologically advanced, the MR-SAM system is equipped with a phased-array radar, which facilitates a networked command-and-control architecture alongside mobile launchers. This design enables the system to engage multiple targets simultaneously. Its radio-frequency seeker-based interceptors enhance both precision and reliability, even under complex operational conditions.
This initiative is also aligned with the Make in India campaign, as the missiles will be produced domestically through a joint venture known as Aerospace Systems India (ASI). Established in March 2024, ASI represents a collaborative effort among IAI, Israel’s Directorate of Defence Research and Development (MAFAT), and India’s Defence Research and Development Organisation (DRDO).
Operating as the sole licensed entity for MR-SAM systems within India, ASI boasts a workforce of 50 members, with 97% being Indian nationals. The organization conducts all financial transactions in Indian rupees and is headquartered in Delhi with regional offices. This approach reflects a deepening technological partnership between India and Israel, emphasizing the localization of production and supply chains.
The upcoming agreements will also open doors to potential procurement of other advanced Israeli missile systems, including IAI’s Air LORS models, underscoring India’s objective to enhance its precision-strike and air defence capabilities.
Strategically, the MR-SAM program has become a symbol of the burgeoning defence synergy between India and Israel, representing not just technology transfer, but also a greater operational integration of their armed forces. As India continues to modernize its air defence framework, this deal is anticipated to significantly bolster strategic deterrence and the development of indigenous technical capabilities.
