Israel’s defence order in the light of Indian defence exports reveals a rapidly deepening strategic and economic partnership that is transforming defence capabilities and boosting “Atmanirbhar Bharat” (self-reliant India). This collaboration offers insights into how Israel’s defence manufacturing prowess and India’s growing export ambitions are reshaping their bilateral ties and global defence landscapes.
India has emerged as Israel’s largest defence client, with defence imports comprising a significant share of India’s total military procurement. In 2023-24, Israel was India’s third-largest defence equipment supplier, contributing 13 percent of total imports, more than doubling from two decades earlier. This growth stems from joint ventures, technology transfers, and licensed production agreements in India, especially under India’s “Make in India” policy, promoting domestic defence manufacturing.
Indian defence firms are transitioning from importers to exporters for the Israeli market. A landmark example is NIBE Limited securing a $17.52 million contract from Israel to manufacture and supply Universal Rocket Launchers with a 300 km range. This contract not only signifies India’s growing technological capabilities but aligns with strategic objectives of boosting exports while decreasing reliance on foreign imports. Such orders underscore India’s emergence as a key global defence manufacturing hub backed by advanced technology collaborations.
The India-Israel defence trade benefits both countries. Israel leverages India’s vast market and manufacturing ecosystem to sustain its defence industry competitiveness. India enhances its military readiness with cutting-edge Israeli technologies such as AESA radars, electronic warfare systems, drones, and missile systems embedded in platforms like HAL Tejas fighter jets. This cooperation boosts India’s defence exports, strengthens its defence industrial base, and adds to export revenues supporting “Make in India” and “Atmanirbhar Bharat”.
While India has made impressive strides, its defence export volume remains relatively modest compared to Israel, which ranks among the top global defence exporters due to a dedicated export promotion agency (SIBAT) and government-backed marketing. India aims to increase its defence exports from about INR11,000 crore to INR35,000 crore by 2025 with an annual growth target of around 26%. Continued deepening of technological partnerships, joint ventures, and government-to-government deals with Israel will be crucial to achieving this target.
Israel’s defence orders and cooperation exemplify a symbiotic defence relationship with India—one that fosters advanced indigenization and export growth. Indian defence exports to Israel mark a critical milestone assuring India’s role not only as a major global importer but also an emerging exporter of sophisticated defence technology, enhancing strategic autonomy and industrial capabilities while reinforcing a vital bilateral alliance.
