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A significant transformation is currently underway in the strategic military partnership between India and Israel.
Moving away from the traditional dynamic where India served primarily as a purchaser of Israeli hardware, Tel Aviv is now preparing to funnel substantial direct investments into India’s defence manufacturing sector.
Senior diplomats and officials from both nations have indicated that this shift is designed to integrate Israeli innovation with India’s industrial scale, effectively utilising the "Make in India" initiative to supply advanced weaponry to the rest of the world.
From Buyer-Seller to Strategic Co-Production
For decades, the defence relationship between the two nations was defined by a clear transactional model: India imported sophisticated Israeli systems, including unmanned aerial vehicles (UAVs), surveillance radars, and precision missiles.However, emerging reports confirm that this framework is being fundamentally restructured.
According to sources within the Indian Embassy in Tel Aviv and the Israeli government, the new strategy focuses on the co-development and mass production of next-generation defence platforms within India.
This initiative is not merely about fulfilling New Delhi’s own security requirements but is explicitly aimed at leveraging India’s manufacturing ecosystem to export to third-party countries.
This aligns seamlessly with the Indian government's Aatmanirbhar Bharat (Self-Reliant India) vision, effectively turning India into a global hub for Israeli-designed military technology.
Focus on Unmanned Systems and Advanced Technology
A key area of this expanded cooperation will likely be unmanned systems.While Israel is a global leader in drone technology, producing these systems domestically has become increasingly expensive. By shifting production lines to India, Israeli defence firms can significantly reduce costs while maintaining high quality.
This model has already seen early success. For instance, the Adani-Elbit Advanced Systems India Ltd. joint venture in Hyderabad has already been manufacturing the Hermes 900 UAV (inducted into the Indian Navy as the Drishti-10 Starliner) and exporting aerostructures to Israel.
The new wave of investments aims to replicate and expand this success across other domains, including loitering munitions, artificial intelligence-led battlefield management systems, and high-tech sensors.
Economic Drivers Behind the Shift
The decision by Prime Minister Benjamin Netanyahu’s government to diversify its manufacturing base is driven by three primary economic and strategic factors:- Changing Market Dynamics: Direct exports of finished Israeli defence products to India have seen a decline as New Delhi prioritises indigenous development and reduces its reliance on off-the-shelf imports.
- Cost Competitiveness: Israel faces rising domestic production costs. Manufacturing in India offers a cost-effective alternative that allows Israeli companies to remain competitive in the global market for drones and missiles.
- India’s Industrial Maturity: With government incentives, a skilled workforce, and a burgeoning private defence sector, India has proven it can support high-end military manufacturing.
Timeline and Strategic Impact
Diplomatic officials suggest that the results of these negotiations will be visible soon, with concrete project announcements expected within the next six to twelve months.This deeper integration promises to enhance India’s strategic sovereignty by embedding advanced technologies—such as electro-optical solutions and AI systems—directly into local production lines.
Furthermore, this partnership is poised to strengthen the geopolitical alignment between the two nations, particularly in the Indo-Pacific and West Asia.
By jointly exporting to friendly nations, India and Israel are setting the stage to establish one of the world's most advanced and mutually beneficial defence industrial partnerships.
