India Secures $340 Million Deal for Israeli-Designed MRSAM Systems

India has inked a $340 million (approximately ₹29.6 billion) contract to acquire over 70 Medium-Range Surface-to-Air Missile (MRSAM) systems, developed jointly with Israel Aerospace Industries (IAI). This procurement marks a major milestone in bolstering the Indian Navy's air defense capabilities and aligns with the country’s “Make in India” initiative, emphasizing local production and technological self-reliance.

The MRSAM systems, derived from the highly advanced Barak 8 air defense platform, are engineered to counter diverse aerial threats, including aircraft, drones, and missiles. With an operational range of up to 70 kilometers, these systems provide a critical layer of protection for naval warships. Each MRSAM system comprises a sophisticated phased-array radar, an integrated command and control center, mobile launchers, and interceptors equipped with cutting-edge sensors for precision targeting.

A Collaborative Effort with Strategic Impact

The production of the MRSAM systems will be carried out by Bharat Dynamics Limited (BDL), IAI’s trusted partner in India. The systems will be deployed on several upcoming Indian Navy warships, strengthening the maritime force's ability to defend its assets and ensure operational dominance in critical regions.

Israel Aerospace Industries, which played a key role in designing the system, will oversee the execution of the deal through its subsidiary, Aerospace Services India (ASI), based in New Delhi. ASI will coordinate the integration of the systems and ensure seamless transfer of knowledge and technology to the Indian workforce. Additionally, the transactions under this agreement will be conducted in Indian rupees, further embedding the project within the local economy.

Supporting India’s “Make in India” Vision

The contract underscores India’s commitment to enhancing indigenous defense manufacturing capabilities. The Ministry of Defence highlighted that the project would contribute significantly to the national economy, generating approximately 350,000 workdays during its lifecycle. This aligns with India’s broader goal of reducing dependence on foreign imports and developing a robust domestic defense industry.

Proven Success Across India’s Armed Forces

The MRSAM system is already operational across all branches of the Indian Armed Forces, including the Army, Navy, and Air Force. Its performance has been lauded for its reliability and precision in high-stakes scenarios. The latest deal expands its footprint within the Navy, where these systems will be pivotal in ensuring layered air defense for modern warships.

Strategic Implications

This agreement represents more than just a procurement—it signals the strengthening of Indo-Israeli defense collaboration, which has seen consistent growth over the past two decades. The inclusion of advanced systems like MRSAM is expected to enhance India’s readiness to address evolving security challenges in the Indo-Pacific and beyond.

By integrating cutting-edge technology with domestic production, this deal reinforces India’s push toward becoming a global hub for defense innovation while addressing the strategic demands of its armed forces.