Amid intensifying geopolitical fault lines and a rapidly fragmenting global arms market, Israel is quietly but decisively reworking its defence supply strategy.
With European support showing visible strain, Tel Aviv is increasingly turning eastward—towards India—to secure long-term resilience in defence manufacturing and logistics.
Europe’s Chilly Shift and Israel’s Growing Anxiety
The trigger for this realignment lies in Europe’s evolving political posture. Several European countries, including Spain, Belgium, and the Netherlands, have imposed tighter controls—or outright restrictions—on the export of military sub-systems to Israel, citing humanitarian and legal concerns linked to the Gaza conflict.
While these nations are not always suppliers of complete weapons platforms, their importance lies elsewhere.
For decades, they have provided critical electronic components, sensors, precision sub-systems, and niche technologies that are indispensable to modern weapons.
The tightening of export approvals has therefore created a serious bottleneck—one that Israeli defence planners now regard as a strategic vulnerability.
A European Paradox: Buying While Blocking
An unusual contradiction has emerged. Even as parts of Europe debate arms embargoes against Israel, European governments are simultaneously buying Israeli weapons in record numbers for their own defence requirements.
The most striking example is Germany, which has recently moved forward with a landmark deal to procure Israel’s Arrow-3 missile defence system—one of the world’s most advanced ballistic missile interceptors.
This dual-track approach—restricting components while importing finished Israeli systems—has underscored for Israel the risks of overdependence on European supply chains.
For a country that lives under constant security pressure and must replenish equipment rapidly during conflict, such uncertainty is untenable.
Why India Has Emerged as the Natural Alternative
Against this backdrop, India has emerged as the centre of gravity in Israel’s defence recalibration.
Officials in Tel Aviv and senior industry figures confirm that Israel no longer views India merely as a buyer of arms, but as a future global manufacturing base for Israeli defence needs.
This shift dovetails neatly with New Delhi’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, which actively encourage co-production, technology transfer, and private-sector participation in defence manufacturing.
Recent high-level exchanges—including the visit of India’s Defence Secretary to Israel in late 2025—have reinforced this trajectory.
Discussions have focused not just on new deals, but on long-term co-production, lifecycle support, and sustainment of advanced weapon systems.
Security Geography: Why Israel Needs Offshore Production
Israel’s push to externalise manufacturing is not driven by politics alone—it is also dictated by geography.
The country’s small landmass means that many defence production facilities fall within potential adversary missile and rocket ranges. Concentrating manufacturing at home is increasingly seen as a strategic risk.
By establishing redundant production lines in friendly countries, Israel gains a vital insurance policy. Even if domestic facilities are disrupted during high-intensity conflict, offshore manufacturing hubs can keep supply lines alive.
India, with its vast industrial base, scalable infrastructure, and growing defence ecosystem, fits this requirement better than any other partner.
Industry Momentum Already Underway
This is not a leap into the unknown. Indian private-sector giants such as Adani Defence and Aerospace and Bharat Forge have already entered joint ventures with Israeli firms, producing small arms, ammunition, and unmanned aerial vehicles (UAVs).
Industry insiders indicate that the next phase could involve missile sub-systems, advanced radar and sensor technologies, loitering munitions, and electronic warfare suites—areas where Israeli expertise is globally unmatched.
Regulatory Caution Still Remains
Despite strong intent, Israeli defence companies are proceeding with measured caution.
Large-scale relocation of manufacturing requires regulatory certainty, and executives are closely watching India’s policies on Foreign Direct Investment (FDI) and the Defence Acquisition Procedure (DAP).
Clearer rules governing technology sharing, export controls, intellectual property protection, and joint venture structures are seen as essential before committing billions of dollars in capital.
What’s at Stake for India and Israel
If these regulatory issues are resolved, the payoff could be substantial.
For India, Israel’s pivot would mean:
- Access to cutting-edge defence technologies
- High-value manufacturing jobs
- Deeper integration into global defence supply chains
For Israel, the partnership offers:
- Strategic depth beyond Europe
- Supply chain resilience during crises
- Reduced vulnerability to political shifts in the West
The Bigger Picture
Israel’s turn towards India is not a rejection of Europe—it is a recognition of a new global reality. In an era of politicised supply chains and fractured alliances, reliability matters more than proximity.
As the global arms market becomes increasingly unpredictable, the Israel–India defence partnership may well evolve from cooperation into co-dependence, reshaping the military-industrial landscape of both nations for decades to come.
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