India rejects Israel joint UAV development offer - report

"Defense News": India has rejected an Israeli proposal to jointly develop a new version of the Heron UAV, made by IAI.

"Defense News" reports that India has rejected an Israeli proposal to jointly develop a new version of the Heron unmanned aerial vehicle (UAV), made by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1). The rejection is an unusual event in Indian-Israeli defense relations. Israeli sources estimate the potential value of the project at several hundred million dollars.

A well-informed Israeli source told "Globes" in response that marketing efforts with foreign countries take time and effort, and that the joint project would probably go ahead, despite the initial rejection. He attributed the rejection to an internal struggle among India's defense officials between those who want to stimulate domestic defense industries, and those who want to play it safe by relying on Israel's experience in UAV development.

"Israel is making a constant marketing effort in India. There is constant urgency to sell the Heron," said the source. "Naturally, there are different perspectives in India about the need for such a project. Such deals are closed overnight. IAI is prepared to invest more time and hopes for success."

"Defense News" quotes a source as saying that the rejection of the joint UAV project reflects new thinking in India's Ministry of Defense to focus on current DRDO projects instead of spending money on new ones. India has been trying for a decade to develop its own advanced UAVs to no avail.

India is one of the biggest markets for the Heron; Israel has sold India scores of the UAV, worth almost $1 billion, in several deals. The Indian Navy, Indian Army, and special forces all operate versions of the Heron. "Defense News" says that India currently operates 60 Herons and that it needs more.

"Defense News" says that IAI and India's Defence Research and Development Organisation (DRDO) submitted the proposal to jointly develop the Heron, but that Ministry of Defense officials said that DRDO should focus on the joint Israeli-Indian mid-range surface-to-air missile (MRSAM) program, a land version of Israel's Barak naval defense missile. The magazine says that the missile problem is behind schedule and has technical problems, including the failure of a prototype in December.

According to "Defense News", the joint missile program began in 2009, and is intended for use by both India and Israel's militaries. IAI is the chief Israeli contractor. The DRDO signed the contract with Israel after an Indian tender for the purchase of a mid-range SAM that would use Indian technology failed. The Indian Air Force wants 18 MRSAM batteries at an estimated cost of $1.2 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Terminal 1 credit: Personal image Terminal 1 reopening revives Israel low-cost fare options

With the opening of the terminal for international flights, the Irish low-cost airline Ryanair has returned to Israel and with it, double-digit US dollar round-trip fares.

Arkady Volozh  credit: Shlomi Yosef Analysts see Israel-linked Nebius challenging CoreWeave

Nebius, founded by Yandex founder Arkady Volozh, operates in CoreWeave's AI server market, but is growing "more rationally", and has far less debt.

Bezalel Smotrich and Amir Yaron credit: Knesset Spokesperson and Tali Bogdanovsky Retail chains, credit card cos could soon act as banks

Israel's financial regulators have proposed that supermarket chains, credit card companies and investment houses will be able to accept deposits and offer credit.

Elbit Systems rocket launcher  credit: Elbit Systems Elbit Systems wins $130m European rocket order

The order is for the supply of rockets for Elbit's Precise and Universal Launching System (PULS), which has an effective range of up to 300 kilometers.

Nvidia VP Ali Kani credit: Nvidia Nvidia intensifies efforts to compete with Mobileye

"Globes" talks to Nvidia VP and automotive team head Ali Kani about the chipmaker's autonomous vehicle activities and assesses the threat to Mobileye.

Fitch ratings agency credit: Shutterstock Fitch reaffirms Israel's A rating with negative outlook

The ratings agency said, "The negative outlook reflects rising public debt, domestic political and governance challenges and uncertain prospects for the conflict in Gaza."

Tamar rig credit: PR Sovereign Wealth Fund earned handsome returns in 2024

Israel's Sovereign Wealth Fund, known as the Citizens' Fund, had assets worth about $2 billion at the end of 2024, the Ministry of Finance reports.

Fencing goes up Petah Tikva's Segula neighborhood  credit: NTA Work on Metro to begin in Petah Tikva

The first work on the Tel Aviv Metropolitan underground railways system will begin on the M2 line depot in Petah Tikva.

Startups credit: Shutterstock/NicoElNino IVC-LeumiTech: Tech fund raising jumps 24% in Q1

Israeli privately-held tech companies raised $2.13 billion in the first quarter of 2025, up 24% from the corresponding quarter of 2024, but down 12% from the preceding quarter.

Miri Regev and Yitzhak Rochberger credit: Yediot Ahronot/ Reuven Kapuchinsky and Amit Shabi Ramat Hasharon wants railway station for the Mossad

Ramat Hasharon is pushing for a station in Glilot neat the Mossad headquarters, even though a new station is also planned for Glilot South, 1.6 kilometers away.

Prime Minister Benjamin Netanyahu credit: Reuven Kastro Police call Netanyahu for testimony as aides arrested

Jonatan Urich and Eli Feldstein are being held over alleged payments received from Qatar while working in the prime minister's bureau.

Highcon chairperson Shlomo Nimrodi  credit: PR Packaging tech co Highcon winding down

The company, which numbers Benny Landa and JVP among its investors, is laying off most of its workforce, having lost 99.9% of its value since its flotation.

MK Almog Cohen  credit: Danny Shem-Tov, Knesset Spokesperson's Office Netanyahu halts Nevatim airport bill

Legislation mandating construction of an airport at Nevatim, near Beersheva, is ready for final Knesset approval, but the prime minister blocked it after a security cabinet meeting.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018