The Indian market – IAI goes full force to win more contracts

Israel Aerospace Industries (IAI) has appointed a corporate VP to deal with one main task – increasing the company’s sales in one of its main markets: India.

This proves again that IAI sees India’s huge market potential, and plans to exploit it aggressively.

Defence ties between India and Israel have been very good in the last 10-15 years. Sources in Israel assess that the total value of Israeli-made defence systems sold to India in the past decade is $9 billion.

The delivery of the Phalcon airborne early warning (AEW) system on a Russian-built Ilyushin II-76 in May 2009 and March 2010 was one on the highlights of these ties. This contract alone had a price tag of $1.2 billion.

In 2000 a similar deal with China was cancelled by Israel after heavy pressure from Washington.

The Americans claimed that they fear the Chinese would use these systems in the event of a military confrontation with Taiwan.

The deal with India also attracted attention from Washington. This time the argument was that the AEW aircraft may be involved in a war between India and Pakistan.

Other Israeli defence companies are also active in India, but IAI is dominant in the market.

The appointment of a corporate VP for this market is another sign that IAI plans to increase its marketing efforts in India.

An Israeli source says the potential in the Indian market for Israeli aerospace and defence companies is huge – IAI knows it, and is going to make a massive marketing effort to benefit.

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