India and Israel Continue to Work Together

(MoneyWatch)  As part of there trend of looking at less traditional sources for defense equipment India has begun using Israel as a source. Israel has vibrant defense and technology industries due to their military situation. The Hindu reports that the government has agreed to have the Israeli Military Industries (IMI) build five plants for artillery projectiles. The contract is worth about $240 million. The contract as well as one for air defense missiles worth from Israel have raised concerns in India. Not only due to the politics involved, but because this represents a turning away from India's attempts to develop a sophisticated indigenous arms industry. The more pragmatic decision to buy existing systems from other countries while demanding large offsets is a sign that India desires to rapidly upgrade technically their military. If the cuts proposed Monday by Secretary of Defense Gates hold there will be more pressure on U.S. companies to sell overseas to make up some of the lost revenue. The next six months should be interesting.