India cancels $500m arms deal with Israel
JERUSALEM: India’s Ministry of Defence has called off an order to buy Spike anti-tank guided missiles from Israel’s state-owned defence contractor Rafael, the company said yesterday.
The deal was worth about $500 million (R6.2 billion) and the announcement of its termination came just a couple of weeks before Israeli Prime Minister Benjamin Netanyahu is due to visit India.
Indian officials had no immediate comment.
The countries have grown closer since Indian Prime Minister Narendra Modi rose to power in 2014, broadening commercial co-operation beyond their long-standing defence ties.
Modi became the first sitting Indian prime minister to visit Israel last year.
“Rafael regrets the decision and remains committed to co-operating with the Indian Ministry of Defence and to its strategy of continuing to work in India, an important market, as it has for more than two decades, to provide India with the most advanced and innovative systems,” the company said.
Defence technology company Rafael, whose chief executive will join Netanyahu on his trip, said the cancellation was made before the final contract was signed.