India recently announced a collaborative effort with Israeli defence firms under the newly liberalised Foreign Direct Investment (FDI) in defence manufacturing. This move comes after the Indian Government increased the FDI limit through automatic route from 49% to 74%. An FDI is an investment made by a firm or individual of one country into business interests situated in another country.
Emergency Powers Granted to the Armed Forces – Context
The Defence Ministry has recently given the Armed Forces emergency powers to procure weapons systems up to Rs. 300 crore without additional clearances. This decision seeks to shorten the procurement cycle, especially amid the ongoing border tensions with China. The Indian Army has ordered launchers, Spike Anti-Tank Guided Missiles (ATGM) and additional Heron Unmanned Aerial Vehicles (UAVs) from Israel, following the emergency procurement route.
India-Israel Defence Cooperation Overview
The bilateral ties between India and Israel primarily revolve around common national interests such as military modernisation for India and commercialising arms industries for Israel. Over time, the scope of this cooperation has expanded to include other essential domains like space, counter-terrorism, cybersecurity, and intelligence sharing. In 2017, India was the largest arms customer of Israel, with sales worth 715 million USD.
Historic Relations between the Two Nations
The strategic cooperation between the two countries began during the Sino-India War of 1962. Israel emerged as a strong ally for India, supplying necessary ammunition during wars and supporting India’s Pokhran nuclear tests in 1998.
Significance of the Collaboration
Imports from Israel have significantly eased operational capabilities of armed forces in both times of peace and war. Israel’s exports have also facilitated the ‘Make in India’ and ‘Make with India’ campaigns in defence. Furthermore, Israel’s credibility as a ‘no-questions-asked supplier’ has helped to strengthen the bilateral relations.
Existing Challenges
Despite the strong ties, some challenges exist in the relationship. The influence of the USA, Cold War politics, India’s commitment to non-alignment, dependence on Arab states for energy security and the conflict in the Gaza Strip are a few factors that necessitate strategic balancing in India-Israel ties.
Defence Technologies Imported by India from Israel
India imports various high-tech defence equipment from Israel, such as Unmanned Aerial Vehicles (UAVs), Air Defence Systems, Missiles and Sensors. These imports include advanced technologies like the Searcher, Hermes 900 and Heron UAVs, BARAK air defence interceptor, Spike Anti-Tank Missiles, and robust sensors like Search Track and Guidance Radar (STGR) and Phalcon airborne warning and control system (AWACS).
Looking Ahead
The strategic cooperation between India and Israel carries vast potential for both countries. It is crucial for India to take advantage of Israel’s technical expertise to boost and modernise its indigenous defence industry. In the future, more technologies could be transferable as the USA envisions a significant role for India in maintaining the balance of power in the Indo-Pacific region. Enhancing the Indo-Israel defence cooperation through Joint Ventures (JV) and Joint Research and Development (RD) can provide a substantial force to fulfil India’s ambition of becoming a major global power.
