India cancels USD 500 million Spike missile deal, says Israeli arms firm Rafael

India junked the contract with Israel even as Defence Minister Nirmala Sitharaman signed off on another contract to buy 130 projectiles to arm an aircraft carrier.

Published: 03rd January 2018 04:14 PM  |   Last Updated: 04th January 2018 08:14 AM   |  A+A-

Israeli Prime Minister Benjamin Netanyahu.|AP

Israeli Prime Minister Benjamin Netanyahu (Photo |AP)

By Express News Service

NEW DELHI: India this week junked a potential $500 million contract with Israel to buy Spike anti-tank guided missiles even as Defence Minister Nirmala Sitharaman signed off on another contract to buy 130 projectiles to arm an aircraft carrier.

The anti-tank guided missiles (ATGMs) are made by Israeli firm Rafael Advanced Defense Systems. Surprisingly, the announcement of the cancellation of the contract for the ATGMs, on the cards for months now, was made by Rafael on Wednesday, a fortnight before the scheduled visit of Israeli Prime Minister Benjamin Netanyahu.

“It should be emphasised that the cancellation was made prior to the signing of the contract and despite Rafael’s compliance with all the demands,” the company said in a statement.

“Rafael regrets the decision and remains committed to cooperating with the Indian Ministry of Defence and to its strategy of continuing to work in India, an important market,” it added.

Rafael won the deal in 2015, after India picked the Spike missile over the US’ Javelin missiles, built by Lockheed Martin Corp and Raytheon Co.

Barak missiles are also made by Rafael. Two variants of Barak missiles arm Indian warships. The 130 Barak I missiles, a follow-on order to an earlier contract, are estimated to cost $70 million.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

facebook twitter whatsapp