PM Modi invites Israeli defence companies to work and invest in India

In a boost to defence and strategic cooperation between Israel and India, Israeli manufacturers are expected to invest and enter into joint ventures with Indian companies under the Make in India campaign.

Israel is expected to be a key ally in the Strategic Partnership Model and work closely with the Indian industry, allowing India to get technology to set up manufacturing units and supply chains within the country, with the help of global players. The policy is aimed at enhancing military capabilities by adding fighter jets, submarines and armoured vehicles, by partnering with foreign firms. At a later stage, this can be extended to other defence equipment.

Prime Minister Narendra Modi said on Monday that he has invited Israeli defence companies to work and invest in India. "I have invited Israeli companies to take advantage of the liberalised FDI regime, to make in India," Modi said, while addressing a press conference along with his Israeli counterpart Benjamin Netanyahu.

The two Prime Ministers consider it important to set the direction for developing more business models and partnerships for the joint ventures and joint manufacturing, including transfer of technology, as well as joint research and development in defence and security fields.

The Indian and Israeli Defence Ministries are likely to hold discussions in 2018, with industry participation, in order to create the basis for viable, sustainable and long-term cooperation.

Recently, the defence ministry cleared the proposal for purchasing 131 Barak missiles from Israel at Rs 460 crore. The missiles and associated equipment are being procured from Israel's Rafael Advanced Defence Systems Ltd, as part of the government's efforts to bolster operational capability of the armed forces.

There is also talk of reviving the Spike anti tank missiles deal that had recently been called off. Just ahead of Israeli Prime Minister Benjamin Netanyahu's visit to India, New Delhi had cancelled a $500-million deal to buy 1,600 anti tank missiles from Israel.

HIGH HOPES

• Israel is expected to be a key ally in India’s Strategic Partnership Model.
   
• It will work closely with the Indian industry to set up manufacturing units and supply chains within the country.