Post Narendra Modi visit, India and Israel eye joint defence production and exports

Prime Minister Narendra Modi’s high-profile visit to Israel has pushed India–Israel defence ties into a new, more ambitious phase—one that moves decisively beyond arms purchases towards co-design, co-production and co-manufacturing for domestic use and exports.Security and defence have long been the backbone of the bilateral relationship, but conversations during the two-day visit signal a strategic shift. According to former diplomat Ashok Sajjanhar, the partnership is now evolving from a traditional buyer-seller arrangement into a collaborative model that leverages Israeli innovation and India’s manufacturing scale.

“Israel has emerged as the second-largest exporter of armaments to India, next only to France,” Sajjanhar told CNBC-TV18. “The next stage is co-designing and co-producing systems in India, not just for our requirements but also for third-country markets.”
That evolution aligns closely with New Delhi’s broader defence indigenisation and export push. Israeli technologies—tested in combat and known for their operational credibility—are increasingly seen as ideal candidates for joint development under the Make-in-India framework.Sajjanhar noted that discussions around more ambitious projects, including missile defence systems often compared to Israel’s Iron Dome, underline the direction of travel. “Innovation comes from Israel, while India provides scale and manufacturing capability. Together, this can create globally competitive defence products,” he said.

The strategic warmth was on full display during the visit. Israeli Prime Minister Benjamin Netanyahu referred to Modi as a “brother” and conferred on him the Speaker of the Knesset Medal—the highest honour of Israel’s Parliament. Modi, in turn, became the first Indian Prime Minister to address the Knesset, reaffirming India’s firm stance against terrorism and committing to deeper cooperation in defence and security.

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Delegation-level talks between the two leaders culminated in multiple memoranda of understanding spanning security, economic cooperation and diplomatic engagement. While the specifics of defence agreements are rarely disclosed, officials and experts see these MoUs as enablers for future joint manufacturing and technology transfer.

Crucially, Sajjanhar stressed that co-production is no longer limited to meeting Indian or Israeli needs. “These jointly developed systems will find ready markets elsewhere. India’s cost competitiveness and Israel’s technological edge together create a powerful export proposition,” he said.

As geopolitical uncertainties intensify and global supply chains fragment, India–Israel defence collaboration appears set to deepen—not just as a strategic necessity, but as a commercial opportunity with global reach.

Watch accompanying videos for entire discussion.