politics

Indian Missile Deal With Rafael Back on Table, Netanyahu Says

  • Israeli PM says scrapped $500 million deal is being revived
  • Agreement seen reflecting burgeoning defense, business ties
Netanyahu in the Indian capital New Delhi on Jan. 15. Photographer: Prakash Singh/AFP via Getty Images

A missile deal with Rafael Advanced Defense Systems Ltd. that the Indian government had canceled is back on the table, Israeli Prime Minister Benjamin Netanyahu said.

Netanyahu’s comment to Israeli reporters covering his state visit to India comes several weeks after word that the Indian Defense Ministry’s $500 million purchase of Rafael’s Spike anti-tank missiles had been called off. Announced last spring, the deal was seen as a testament to burgeoning business and security ties between the two countries.

Rafael confirmed earlier this month that the deal had been called off, but Israeli officials promised to press the Indian government to reinstate it. It wasn’t clear if the revived deal would still total $500 million; Netanyahu said details were being finalized.

India’s government had canceled the contract to give the state-run Defence Research and Development Organisation an opportunity to design, develop and manufacture its own anti-tank missile, two Indian defense officials said in early January, asking not to be identified because they were talking about private discussions.

Netanyahu’s trip follows Indian Prime Minister Narendra Modi’s landmark visit to Israel in July, when the two leaders hailed growing defense cooperation and signed agreements in areas ranging from water conservation to space research. Trade between the countries has grown from about $200 million in 1992, when they established diplomatic ties, to nearly $4.2 billion in 2016, according to Israel’s Economy Ministry.

— With assistance by Nc Bipindra, and Iain Marlow

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE