Why Israel's Rafael wants India to build Iron Dome missiles; exports could be the real game changer

Jerusalem: Israeli state-owned defence company Rafael Advanced Defence Systems is reportedly in discussions with Indian defence firms to establish a production line for Iron Dome's Tamir interceptors in India.

If finalised, the move would mark a significant expansion of the India-Israel defence partnership, strengthening local manufacturing while positioning India as a production and export hub for advanced air defence systems.

Rafael plans to manufacture Iron Dome interceptors in India

Israeli defence manufacturer Rafael Advanced Defence Systems is reportedly exploring the establishment of a production line in India for Tamir interceptors, the missiles used by the Iron Dome air defence system. According to multiple reports, the company is holding discussions with Indian defence firms as part of a broader effort to expand defence manufacturing beyond Israel.

If the proposal moves forward, India would become only the second country after the United States to manufacture Iron Dome interceptors outside Israel. The project would also align with India's long-standing policy of encouraging foreign defence companies to manufacture locally through technology partnerships and industrial collaboration.

More than a manufacturing project

The reported proposal goes beyond simply assembling missiles. It reflects the growing strategic cooperation between India and Israel in defence production, technology sharing and supply-chain resilience.

Officials have indicated that the partnership under discussion could include joint production of defence systems, collaboration on future military technologies and mechanisms for emergency procurement during periods of heightened security concerns. While details have not been officially announced, the discussions suggest that both countries are seeking to institutionalise a relationship that has expanded steadily over the past two decades.

Why India matters to Rafael

India is among the world's largest importers of defence equipment and has increasingly encouraged overseas companies to manufacture products within the country rather than rely solely on exports.

Establishing production in India could offer Rafael several advantages:

• Lower manufacturing costs through local production.
• Access to India's expanding defence industrial base.
• A manufacturing hub capable of serving export markets.
• Greater resilience by diversifying production beyond facilities in Israel and the United States.
• Better alignment with India's localisation requirements for defence procurement.

The company already operates an interceptor production line in northern Israel and another in the United States through its partnership with Raytheon. An Indian facility would further diversify its manufacturing network.

A boost for India's defence manufacturing ambitions

For India, the reported proposal fits into the broader objective of expanding domestic defence production and reducing dependence on imported military equipment.

Successive governments have promoted policies encouraging foreign manufacturers to establish production facilities in India through joint ventures and technology partnerships. Such projects are also intended to strengthen local supply chains, create skilled employment and increase India's defence exports.

If implemented, Tamir interceptor production would add another high-value missile programme to India's expanding defence manufacturing ecosystem.

India and Israel's growing defence ties

India and Israel have steadily expanded defence cooperation over the years across missiles, surveillance systems, drones, radars and electronic warfare technologies.

One of the most significant collaborations has been the jointly developed Barak 8 air defence system, which is now used by the Indian Army, Navy and Air Force. Israeli defence companies have also established manufacturing partnerships in India for unmanned aerial vehicles and other military equipment.

The proposed Iron Dome interceptor production would represent another step in this evolving industrial relationship rather than a standalone procurement agreement.

Global demand for air defence systems

The discussions also come at a time when demand for air defence systems has increased globally due to ongoing conflicts and changing security environments.

Governments in several regions have invested in missile defence capabilities to counter drones, rockets and cruise missiles. Expanding manufacturing capacity outside Israel could help Rafael meet growing international demand while reducing pressure on its existing production facilities.

Industry analysts note that additional manufacturing capacity could also improve supply-chain flexibility during periods of high demand or operational disruption.

No official agreement announced yet

Although reports indicate that discussions are at an advanced stage, neither the Indian government nor Rafael has publicly announced the signing of a final agreement.

If approved, the project would still require decisions on technology transfer, production responsibilities, export arrangements and regulatory clearances before manufacturing could begin.

Why the proposal matters

The reported production line is significant not only because of the Iron Dome system itself but because it reflects a broader shift in global defence manufacturing. Instead of relying solely on exports from their home countries, major defence companies are increasingly building production partnerships with countries that offer industrial capacity, skilled workforces and growing domestic markets.

For India, such partnerships could strengthen its position as a defence manufacturing hub. For Rafael, expanding production into India could improve manufacturing flexibility, support future exports and deepen its presence in one of the world's largest defence markets.