Israel Aerospace Industries Ltd has signed a $2.5 billion deal with India to develop an anti-aircraft system and missiles for the country, in the biggest defense contract in the history of Israel.
IAI CEO Yitzhak Nissan recently visited India to finalize the agreement with heads of the defense establishment and the country's president.
The Indian government has already approved the project, in the framework of which the IAI will develop for the Indian Navy and Air Force the Barak-8 missile that is capable of protecting sea vessels and ground facilities from aircraft and cruise missiles. The missile has a range of over 70 kilometers.
The missile will replace the current obsolete Russian system used by India.
The Indian Navy is already using the ordinary Barak missile, which was manufactured by Rafael and the IAI, but whose abilities to counter
advanced threats are limited. The new missile is launched vertically and has an independent radar system.
Defense officials estimate that the sells potential in India for the Israeli defense industries stands at several billion dollars in the next few years. "They are upgrading their entire military systems, and the potential there is huge," one source said.