Prime Minister Benjamin Netanyahu will be traveling to India next week for a state visit, as part of which he will also be broaching the subject of strengthening security ties between Israel and the subcontinent.
India planned on purchasing the missiles for its military at a cost of $500 million, the original proposal said, in a contract drafted between the Indian army and Rafael.
The Indian government, it was reported, was now examining the possibility of purchasing them from Israel through the G-to-G route, as it has done in a deal with the French government to procure fighters jets, official sources said.
Indian media outlets published the Indian Defense Ministry's intentions of backing out of the deal in November. The original framework was for India to procure 8,000 Spike ATGMs and 300 launchers.
Official sources told Indian media Rafael's bid faced an uphill battle after the company refused to commit to fully moving production technologies to India.