Articles

Israel Moves High-Tech Defence Manufacturing to India

Written by Aparna Rawal

The Strategic Rationale, Regional Signals, and Global Impact

Introduction

India and Israel are embarking on a strategic realignment in terms of their defence relationship which that could reshape regional military balances and redefine global defence manufacturing networks. The relationship between the two nations first began decades ago as a transactional buyer–seller arrangement. It can be ascertained now that both nations are in a transformative phase which has pivoted to a strategic industrial partnership centred on co-development, local production, and export-oriented defence manufacturing.

Israel’s exploration of relocating significant segments of its high-technology defence manufacturing chain to India under the Make in India initiative indicates not only a commercial decision, but also a strategic recalibration driven by security concerns, geopolitical alignments, and long-term industrial planning. This initiative accelerates India’s determination to become a global defence manufacturing hub.

India’s Defence Dependence: From Russia to Diversification

Since the cold war era, India relied on the Soviet Union (later Russia) for its core military platforms. This included MiG and Sukhoi fighter aircrafts, T-72 and T-90 main battle tanks, Kilo-class submarines, Nuclear-powered submarines and Long-range missile technologies etc.

This has served India well during periods when Western suppliers were constrained by sanctions or political conditions. However, there are several factors which pushed New Delhi toward diversification:

  1. Supply chain vulnerabilities
  2. Delays in Russian defence deliveries
  3. Technology stagnation in certain platforms
  4. Geopolitical complications since the Ukraine war
  5. India’s growing demand for cutting-edge systems due to Pakistan’s or neighbouring nations predictable attitude towards Indian territory.

Hence, India expanded its defence cooperation with technologically advanced partners such as Israel and France, prioritizing quality, adaptability, and technology transfer over sheer volume.

Why Israel Is Shifting Manufacturing Abroad

Israel’s defence industry is among the most innovative in the world, producing systems which are combat-tested and globally exported. Key areas include:

  • Missile defence (Iron Dome, David’s Sling derivatives)
  • Precision-guided munitions
  • Surveillance and combat drones
  • Electronic warfare and cyber systems

Despite its technological edge, Israel faces a structural vulnerability: geography.

According to various Defence analysts, Israel’s limited strategic depth makes its military-industrial infrastructure susceptible during high-intensity conflicts. Major production facilities are within reach of missile and drone attacks. Hence, it can be inferred that by relocating portions of its defence manufacturing chain to India, Israel gains geographic insulation from regional conflicts, industrial scale unavailable domestically in Israel, cost-efficient production, access to a massive defence market and moreover a politically stable, trusted strategic partner.

An Israeli defence analyst summarized this by stating that India offers Israel “strategic redundancy”, the ability to sustain defence production even during crises at home.

Weapons and Systems Are Being Made in India

  • Existing Examples

India is already manufacturing several Israeli-origin systems domestically, demonstrating that this shift is operational.

  1. Barak-8 Air Defence System, jointly developed by India’s DRDO and Israel Aerospace Industries (IAI). Deployed by the Indian Navy, Army, and Air Force. Manufactured in India with substantial technology transfer Designed to counter aircraft, UAVs, cruise missiles, and sea-skimming threats.

 

  • Israeli Drones

India operates multiple categories of Israeli drones, including Heron UAVs Searcher surveillance drones and Loitering munitions.

Several of these platforms are already assembled or manufactured in India with Indian private-sector involvement.

Upcoming and Proposed Projects

According to defence officials, several advanced programmes are under discussion:

  • High-end armed and surveillance drones
  • Next-generation loitering munitions
  • Advanced electronic warfare systems
  • Missile subsystems and sensors

These projects are being designed not merely for Indian use, but for global export, aligning with the vision of Make in India for the World.

 

India’s Changing Defence Procurement Philosophy

New Delhi no longer wants to remain dependent on imported finished platforms. Instead, its priorities include:

  • Indigenous design capability
  • Manufacturing ecosystems
  • Skilled workforce development
  • Export competitiveness

A senior Indian diplomat recently stated that the visible impact of Israel’s manufacturing shift would emerge within six months to a year, indicating that industrial groundwork is already being laid.

India has explicitly communicated to partners that it expects to procure over USD 250 billion worth of defence equipment in the next decade. Meeting this demand requires local production, not imports.

Strategic Message directed to Pakistan

From Islamabad’s perspective, the India–Israel defence partnership carries clear implications:

  • Enhanced Indian air defence coverage reduces Pakistan’s offensive options.
  • Superior surveillance and drone capabilities bolsters India’s situational awareness along the Line of Control
  • Precision-strike technologies increase deterrence credibility

Israel’s willingness to embed its defence manufacturing within India reinforces India’s long-term qualitative military advantage rather than short-term acquisitions.

Strategic message aimed at Turkey

Turkey’s defence relationship with Pakistan has grown significantly in recent years, particularly in:

  • Drone technology
  • Naval cooperation
  • Military training
  • Political alignment on Kashmir
  • Oil sectors (offshore drilling projects in future)

Turkey’s strained relations with Israel have further politicized defence alignments. In this context, Israel’s deepening partnership with India acts as a counterbalance to Turkey’s growing influence in South Asia.

Israel indirectly is strengthening a rival pole to Ankara’s influence across the broader Indo-Pacific and Middle Eastern security landscape by aligning industrially with India.

India as a Global Defence Exporter

India’s long-term objective is not merely self-sufficiency but global competitiveness. Examples already exist:

  • BrahMos missile exported to Southeast Asia
  • Akash air defence system sold to friendly nations
  • Artillery systems and radars exported to Africa and Asia

Israeli collaboration facilitates this trajectory by integrating world-class innovation with Indian-scale manufacturing.

Between 2000 and 2010 alone, Israel supplied nearly USD 10 billion worth of defence equipment to India. Over time, trust deepened due to consistent Israeli reliability during crises, cooperation between the two nations to share sensitive technologies and absence of political prerequisites or conditions.

This partnership reshapes regional power equations, sends unmistakable strategic message to Pakistan and Turkey, and reinforces India’s status as a trusted long-term security partner for some of the world’s most advanced defence innovators.

 

 

More on India-Israel cooperation:

India–Israel Defence Pact 2025: Boosting Make in India, Joint Production, and Military Technology Sharing: https://www.thestrategicperspective.org/india-israel-defence-pact-2025-boosting-make-in-india-joint-production-and-military-technology-sharing/

Israel’s Uvision, U.S. Partner Win Big Army Loitering‑Munition Contract; Company Eyes Longer‑Term Role in LASSO: https://www.thestrategicperspective.org/israels-uvision-us-partner-win-big-army-loitering-munition-contract/

The Israel-Iran War: https://www.thestrategicperspective.org/the-israel-iran-war/

US approves massive potential sale of precision munitions to Israel: https://www.thestrategicperspective.org/us-approves-massive-potential-sale/

About the author

Aparna Rawal

Aparna Rawal is a research analyst and writer specializing in Af/Pak region and counter-terrorism. She was the former Editor-in-chief for Voice of Baloch. She possesses MA in International Relations and Diplomacy from Annamalai University, India.

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