India has inked a defence deal worth $2 billion with Israel based companies, revealed Israel Aerospace Industries on Thursday who bagged a big part of the contract.

The company has been allotted the contract of $ 1.6 billion with the rest going to other state owned companies of Israel for supplying medium-range surface to air missile system (MRSAM) to India. The technology of MRSAM has been collectively developed by India’s Defence Research and Development Organization (DRDO), Israel defence companies Rafael and the Elta Division of Israel Aerospace Industries (IAI).

According to sources, this project has the contribution of Larsen and Tubro also where with the technology, a substantial part of equipment manufacturing will be done in India thus supporting ‘Make in India’ movement.

President Reuven Rivlin extended his wishes and termed this feat as ‘exceptional’. This deal was discussed in Rivlin’s last visit to India but the formalities took time and the declaration was made the last Thursday. According to Joseph Weiss, the chief executive officer of IAI, this deal demonstrates the faith of Indian government in company’s proficiency and competence.

Current version of MRSAM is already functional in the Indian Air Force, Indian navy and Israel Defense Forces (IDF), but this newly developed technology will upgrade MRSAM with array radar, mobile launcher and advanced RF seekers. IAI on Thursday also suggested that it would provide India with additional LRSAM (Long range air missile defence system) along with the advance MRSAM missiles. This LRSAM would be placed in the indigenous first aircraft carrier of India.

This deal is the biggest in the history of Israel defence industry which will bolster the relation between the two nations.