Israel signs $630 million arms deal with India

Israel and India penned a deal worth $630 million on Sunday, to provide India's navy with missile defence systems following a record weapons sale between the two countries last month.

The new contract will see state-owned Israel Aerospace Industries (IAI) supply LRSAM air and missile defence systems for four Indian naval ships, a statement from the company said.

"The new contract adds to other deals signed in the last decade by IAI with India's defence forces, reinforcing IAI's global leadership position in air and missile defence systems," IAI president and CEO Joseph Weiss said in a statement.

IAI said the contract will be carried out with India's Bharat Electronics Limited, which will be the project's main contractor.

LRSAM is an advanced air and missile defence system, jointly developed by IAI and India's Defence Research and Development Organisation.

In April, IAI said India will buy nearly $2 billion worth of weapons technology from Israel in what was described as the "largest defence contract" ever signed by the military exporting giant.

Israel Aerospace Industries described the deal as a "mega missile agreement" and said it is "considered to be the largest defence contract in Israel's defence industries' history".

Israel Aerospace Industries said some components will be assembled in India, in line with Modi's push to reduce reliance on costly imports.

Israel and India have experienced a rapid warming of ties as they expand their strategic alliance. Tel Aviv has been supplying India with weapons for a number of years, including various weapons systems, missiles and drones.

India, the world's largest defence importer, has been investing tens of billions in updating its military equipment to counter long-standing tensions with regional rivals China and Pakistan.

Israel, which sees India as a strategic partner in reaching its own goals in the region is a top weapons exporter, with sales last year surging to $6.5 billion.

Agencies contributed to this report.