India Prefers Israel Over US for $525m Missile Deal

India Prefers Israel Over US for $525m Missile Deal

India has chosen to buy anti-tank guided missiles from Israel, rejecting a rival US offer, as the right-wing government clears projects worth $13.1 billion to modernize its ageing military, official sources said on Sunday.
Prime Minister Narendra Modi’s government will buy 8,356 Spike missiles and 321 launchers from Israel in a deal worth 32 billion rupees ($525 million), defense ministry sources told AFP.
The government is moving to speed up long-delayed defense orders and bolster its military. The Israeli deal comes after recent firing along India’s border with nuclear-armed rival Pakistan and tensions with giant neighbor China.
The procurement deals, worth 800 billion rupees ($13.1 billion) in total, were cleared at a meeting of India’s Defense Acquisition Council, headed by Defense Minister Arun Jaitley, on Saturday.
India, the world’s biggest arms importer, is in the midst of a $100-billion defense upgrade program and cleared proposals worth nearly $3.5 billion in June.
Nationalist leader Modi, who stormed to power at elections in May, has said India must build up its military might to the point that no other country “dare cast an evil eye” on the South Asian nation.
A series of corruption scandals under the previous government had brought defense procurement to a near standstill.
The council also agreed to go ahead with locally building six submarines, in collaboration with a foreign partner, in a project worth $8.2 billion, according to local media reports on Sunday.
French, Russian, German and Spanish firms are interested in partnering with India for the project, according to the Hindustan Times.
The government has raised the foreign investment cap on India’s defense industries to speed up the military’s modernization.
Twelve Dornier aircraft will also be bought for the navy and 362 infantry combat vehicles, the local reports said.
Indian soldiers were this month embroiled in days of deadly tit-for-tat firing along the border with Pakistan, while tensions were also hiked at a remote border frontier in September during a stand off with Chinese troops.


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