U.S- India defense “Honeymoon” – will it affect Israel?

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Sources in the Israeli ministry of defense say that the growing cooperation between the US and India on defense forces may decrease to potential of the defense market in India open for Israeli companies.

The US and India have finalized agreements on two technology co-development projects in what Pentagon officials hope will be a milestone in military-industrial relations for the Pentagon and its Indian counterparts.

According to Defense News, the countries also formalized a new defense agreement last week, one which sets the groundwork for the next decade of military cooperation between the two nations.

During President Barack Obama’s visit to India lest January, he announced four “Pathfinder” programs for military cooperation among the two nations, including two “Project Arrangements” of co-development on a chemical-biological protective suit and portable field generators.

Any agreement on major programs would be a boost for the industries of both nations. According to the Pentagon, the US and India have conducted $10 billion in weapon sales over the past decade.

While Carter said the new agreements help “blaze a trail” forward for other potential agreements, he also acknowledged institutional issues to work through in the relationship.

India in recent years became a major market for the Israeli defense industries. The new defense ties between The US and India may decrease the business potential for the Israeli companies, The Israeli sources said.