Indian Prime Minister Narendra Modi is poised to finalize a substantial defense agreement with Israel during his upcoming visit to Jerusalem. Reports indicate that the total value of potential deals could reach between $8 billion and $10 billion. This initiative follows the recent escalation of military conflicts, including the 2023-2025 Middle East war and the May 2025 India-Pakistan conflict, which underscored vulnerabilities in India’s defense capabilities.
The anticipated agreements are set to encompass various advanced air-defense systems developed by Israel, which have recently demonstrated their effectiveness in combat scenarios. The deals are expected to cover all four main components of Israel’s multilayered missile defense architecture: the Israel Aerospace Industries (IAI) Arrow missile-defense system, Rafael‘s David’s Sling and Iron Dome, as well as Rafael and Elbit’s Iron Beam. These systems aim to enhance India’s defenses against an array of threats, including long-range ballistic missiles, medium-range rockets, and short-range projectiles.
In addition to defensive measures, India is likely to secure agreements related to offensive drone capabilities. Several Israeli companies are competing to provide solutions in this sector, with a significant deal expected for Elbit‘s Hermes 900 drone. The negotiations may also include agreements for Rafael‘s SPICE 1000 guidance kits, Elbit‘s Rampage air-to-ground missiles, Ice Breaker naval cruise missiles, and IAI’s Air LORA missiles. These agreements will enable India to strike targets from beyond the reach of enemy air defenses, a tactic exemplified by the Indian Air Force’s operations in June 2025 against Iran.
India has historically been Israel’s largest defense purchaser, acquiring approximately 34% of Israeli arms from 2020 to 2024, according to the Stockholm International Peace Research Institute (SIPRI). The Israeli Ministry of Defense reported that total arms sales to India during this period amounted to around $20.5 billion. From 2012 to 2017, defense sales between the two nations surged, notably when Jerusalem sold New Delhi the Barak anti-air threats system for naval vessels, valued at $3.4 billion.
Although the market remained robust from 2017 to 2023, it cooled slightly as both countries adapted to Modi’s “Made in India” policy. Nonetheless, by 2024, Israeli firms began increasing their investments in India, establishing subsidiaries that fostered a blend of purchases and long-term partnerships in defense production. This strategic shift, alongside ongoing conflicts in both nations, has led to a resurgence in defense deals, with projections indicating a potential record-breaking year in 2026.
In addition to conventional military agreements, Modi’s visit may also facilitate the launch of various cyber, artificial intelligence, and even quantum technology joint ventures. These developments not only enhance India’s defense posture but also signify a deepening of bilateral ties between India and Israel, with implications for regional security dynamics.
