Israeli joint venture wins huge Indian army rifle deal

The Indian Army is procuring 425,000 CQB carbine assault rifles from PLR Systems, a joint venture between Israel Weapons Industries (IWI) controlled by Samy Katsav through the SK Group holding company, and Adani Corporation, the owner of Haifa Port. The deal includes the purchase of rifles for about $3.3 billion from the same joint venture and Bharat Forge. Delivery will begin in September 2026 and end by 2028.

The division of the deal between the companies includes 40% (about $1.32 billion) of the deal volume for the Katsav-Adani joint venture and about 60% for Bharat Forge. This is a huge deal even in Indian terms, stemming from a demand made by the Indian Ministry of Defense in Delhi for the purchase of about 425,000 new 5.56 mm rifles. Dr. Lauren Dagan Amos, a researcher on India’s foreign and security policy at Bar-Ilan University and a member of the Deborah Forum, says that the deal is within the framework of the Make in India program, which means: the product must be designed and manufactured in India, with at least 50% local content (or 60% if not designed locally). “This is a clear expression of the self-reliance policy in security, which is being led by the Narendra Modi government under programs such as Make in India and iDEX,” explains Dagan Amos. “The deal also illustrates Indian-Israeli cooperation in the defense field.”

Israel’s main export destination

India, according to the Stockholm International Peace Research Institute (SIPRI), was Israel’s main defense export destination between 2020 and 2024, with about 34% of defense exports sold there. During the war, ships transported weapons from India to Israel, while for years many Israeli companies, including Elbit Systems and Israel Aerospace Industries, have been operating production infrastructures in India.

Reports in India indicate that Prime Minister Narendra Modi and his government are interested in procuring Israeli weapons systems that they do not currently have. For example, India is interested in purchasing LORA missiles from IAI. India’s interest in IAI missiles stems from an escalation of tensions with Pakistan. In skirmishes in May, Rampage air-to-ground missiles hit Pakistani air force bases. These missiles are jointly produced by Elbit’s IMI unit, IAI’s MLM plant, and Tomer. India now realizes it needs precise air-to-ground missiles for long ranges and is therefore interested in LORA missiles.

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Rampage has a range of about 250 kilometers, and the Indian Air Force uses it on Sukhoi 30 and MiG 29 aircraft. It is very accurate, but its range is about 150-250 kilometers, which puts Indian fighter jets at risk against Pakistani defense systems made in China. In contrast, LORA has a range of about 400 kilometers, and with it fighter jets can hit targets without endangering themselves from advanced air defense systems.

LORA, developed at IAI’s MLM plant, is designed to hit missile sites, military bases and air defense systems, without endangering pilots and aircraft. The missile weighs about 1,600 kilograms flies at supersonic speed, and uses satellite navigation that is protected from jamming. One of its most notable advantages is the “launch and forget” method, meaning it is launched to the target and does not need to be guided along the way. Its warheads are diverse and can be designed to hit soft targets or bunkers. With a range of about 400 kilometers and a strike radius of only about ten meters, it is expected to allow India to hit any Pakistani base.

Published by Globes, Israel business news – en.globes.co.il – on October 23, 2025.

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