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India has signed its biggest defence deal with Israel for the purchase of a state-of-the-art air defence system. This whole deal would cost India $1.4 billion.
Israel Aerospace Industries (IAI) has officially acknowledged that the two countries signed the defence deal on 27 February under which Israel has agreed to develop and manufacture seaborne and shore-based systems against missile attack on India, business daily Globes reported.
The deal has been signed at the time when India is in an advanced stage of testing of its own anti-missile shield. The Defence Research and Development Organisation (DRDO) has already successfully test-fired its advanced air defence (AAD) missile.
Both the sides have agreed to it that part payment for the defence system shall be made during the stage of development and the rest will be paid during the 66 month delivery period, which is scheduled to begin 90 months from the date the advance payment is received, the report said.
According to the agreement, IAI has also undertaken to procure military or aviation products and services from India. It has also been decided that IAI will invest in defence companies in India up to the limit of 30% of the contract. At present, India is the largest buyer of arms from Israel. The Economic Times
March 27, 2009
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