India Poised to Approve $3.76 Billion MR-SAM Air Defence Deal with Israel
India is set to enhance its air defence capabilities and bolster its domestic manufacturing sector by approving defence contracts valued at $3.762 billion in collaboration with Israel. These contracts primarily focus on the Medium Range Surface-to-Air Missile (MR-SAM) systems, which have been jointly developed by Israel Aerospace Industries (IAI) and Bharat Dynamics Limited (BDL).
The Defence Procurement Procedure Administration, led by Defence Minister Rajnath Singh, is scheduled to convene on November 23 to finalize these significant deals.
New agreements will see an increase in the acquisition of rockets for the Indian Army, along with over 300 MR-SAM units for the Indian Air Force and Indian Navy. As a key product of Indo-Israeli collaboration, the MR-SAM system is integral to India's layered air defence strategy, designed to counter threats from aircraft, helicopters, drones, and cruise missiles.
The MR-SAM is outfitted with advanced features, including a phased-array radar, networked command-and-control architecture, and mobile launchers, allowing it to track and engage multiple targets at once. Its interceptors, which use a radio-frequency seeker, ensure precision and dependability in challenging conditions.
In line with the Make in India initiative, the MR-SAM missiles will be produced domestically through Aerospace Systems India (ASI), a joint venture with IAI established in March 2024. This initiative involves Israel's Directorate of Defence Research and Development (MAFAT) and India's Defence Research and Development Organisation (DRDO).
ASI is the sole licensed entity for MR-SAM systems in India and employs a team composed of 97% Indian nationals, conducting all financial transactions in Indian rupees. With its headquarters in Delhi and multiple regional offices, ASI highlights the deepening technological partnership between India and Israel, focusing on local production and supply chains.
The procurement also opens avenues for India to explore other advanced missile systems from Israel, such as IAI's Air LORS models, showcasing India's broader strategy to strengthen its precision-strike and air defence capabilities.
The MR-SAM program symbolizes the synergy between India and Israel in defence, featuring not only technology transfer but also operational integration between their armed forces. This initiative is expected to significantly bolster India's strategic deterrence and indigenous capability development as the country continues to modernize its air defence network.







