India and Israel are deepening their defence relationship, transitioning from a traditional buyer-seller model to a more strategic, collaborative partnership focused on investments, joint manufacturing and technology sharing. This represents a major evolution in bilateral defence cooperation, with Israeli firms increasingly exploring production shifts to India and larger defence industrial ties taking shape.
From Export Market to Co-Production Hub
Historically, Israel has been one of India’s key defence suppliers, providing advanced systems such as air defence missiles, drones and surveillance platforms. But the nature of this relationship is now changing. Israeli defence companies are increasingly considering direct investments in Indian manufacturing facilities rather than simply exporting products. This shift is driven by India’s expanding defence industrial base and its push to become a global defence production hub.
Under this new paradigm, Israeli firms are looking at producing weapons systems, components and other defence equipment within India itself, aligning with India’s “Make in India” and self-reliance objectives. For Indian industry, welcoming foreign investments and co-production offers a chance to absorb advanced technologies, improve local manufacturing capability, and create jobs in high-tech sectors.
Co-Development and Technology Transfer
Beyond manufacturing, the collaboration is expected to extend into co-development and research partnerships. Joint ventures could see Indian and Israeli companies undertaking defence innovation together — from missile systems to unmanned aerial vehicles and next-generation surveillance technologies. By pooling expertise, both countries hope to reduce dependency on imports and boost indigenous capability.
This trend mirrors broader shifts in defence supply chains globally, where strategic partners work closely rather than sourcing finished products from abroad. For Israel, placing manufacturing and development resources in India provides access to a large market and strengthens economic ties. For India, it accelerates technological growth and supports goals of defence industrial modernization.
Strategic and Economic Benefits
The evolution of India–Israel defence ties has both strategic and economic implications. Strategically, it reinforces bilateral trust and shared security interests. Economically, increased foreign investment and joint manufacturing can strengthen India’s defence sector, attract skilled talent, and boost exports.
Experts suggest that this new phase of cooperation could also enhance India’s role as a regional defence producer. By working with international partners on co-production and technology sharing, India aims to build a competitive defence ecosystem capable of serving both domestic needs and export markets.
Challenges Ahead
Despite the potential, challenges remain. Ensuring smooth technology transfer, balancing intellectual property concerns, and aligning regulatory frameworks will require ongoing dialogue. Additionally, both sides must ensure that joint projects translate into real capacity on the ground.
Nevertheless, the shift in India–Israel defence ties marks a significant milestone, moving beyond transactional purchases toward shared industrial growth and strategic partnership.
