In a major boost to India’s air defence capability and indigenous manufacturing ecosystem, New Delhi is preparing to approve defence contracts worth $3.762 billion with Israel, focusing on the Medium Range Surface-to-Air Missile (MR-SAM) systems jointly developed by Israel Aerospace Industries (IAI) and Bharat Dynamics Limited (BDL).
The Defence Procurement Procedure Administration, chaired by Defence Minister Rajnath Singh, is expected to meet on November 23 to finalise these high-value deals.
Expansion of MR-SAM Procurement
The new agreements include extended orders of rockets for the Indian Army and over 300 MR-SAM units for the Indian Air Force and Indian Navy. The MR-SAM system, a flagship product of Indo-Israeli cooperation, plays a pivotal role in India’s layered air defence network, capable of neutralising multiple aerial threats such as aircraft, helicopters, drones, and cruise missiles.
Advanced Technology and Capabilities
The MR-SAM is equipped with a phased-array radar, networked command-and-control architecture, and mobile launchers, enabling it to engage several targets simultaneously. Its radio-frequency seeker-based interceptors enhance precision and reliability even in complex operational conditions.
Strengthening ‘Make in India’
Aligned with the Make in India initiative, the missiles will be manufactured domestically through Israel Aerospace’s joint venture in India — Aerospace Systems India (ASI). Established in March 2024, ASI represents a collaboration between 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 in India, ASI employs a 50-member workforce, 97% of whom are Indian nationals, and conducts all financial transactions in Indian rupees. Headquartered in Delhi with regional branches, ASI underscores the deepening technological partnership between India and Israel through localisation of production and supply chains.
Expanding Defence Cooperation
The upcoming procurement also paves the way for exploring other advanced Israeli missile systems such as IAI’s Air LORS models, reflecting India’s broader intent to enhance its precision-strike and air defence capabilities.
Strategic Significance
The MR-SAM program has become a symbol of Indo-Israeli defence synergy, representing not just technology transfer but also operational integration between the two nations’ armed forces. As India continues to modernise its air defence network, this deal is expected to significantly enhance strategic deterrence and indigenous capability development.
