Indian companies such as Bharat Forge, DCX Systems Ltd, L&T, HBL Power Systems Ltd, Tech Mahindra Ltd and Astra Microwave Ltd. have tie-ups with Israel
India currently exports Brahmos missiles, artillery guns, PINAKA rockets & launchers, Dornier-228, simulators, armoured vehicles and radars,, Nuvama said. India currently exports Brahmos missiles, artillery guns, PINAKA rockets & launchers, Dornier-228, simulators, armoured vehicles and radars,, Nuvama said.
Nuvama Institutional Equities in its latest report said any escalation in Israel-Hamas war may create opportunities for Indian players such as Bharat Forge Ltd, Larsen & Toubro Ltd (L&T), Tata Advanced Systems and Adani Group in the near-to-medium term, as Israel is likely to reach out to its allies such as India to ensure ample stockpiles for the war.
Nuvama noted that a few Indian companies have tie-ups with Israel including Kalyani Rafael Advanced Systems (JV of Bharat Forge and Rafael Advanced Defence Systems), Adani-Elbit JV, DCX Systems Ltd, L&T, HBL Power Systems Ltd, Tech Mahindra Ltd, Astra Microwave Ltd and Tata Advanced Systems.
The brokerage said India currently exports Brahmos missiles, artillery guns, PINAKA rockets & launchers, Dornier-228, simulators, armoured vehicles and radars.
The domestic brokerage said global demand for India’s localised products, such as LCA Tejas, LCH Prachand, aircraft carriers and MRO activities are also growing.
“Given the private sector accounts for 60–70 per cent of India’s total defence exports, we believe escalation of this ongoing Israel-Hamas war may create opportunities for players such as Bharat Forge, L&T, Tata Advanced Systems and Adani Group. in the near to medium-term as Israel would reach out to its allies (including United States) in order to have ample ammunition, defence power to fight the war,” it said.
Nuvama said ‘Make in India’ initiative along with several other reforms have encouraged and opened gateways for large private players as well as MSMEs to participate and contribute to this development.
“On the other hand, expenditure on defence procurement from foreign sources has reduced from 46 per cent of overall expenditure in FY19 to 36.7 per cent by 9MFY23,” Nuvama said. It noted that India exports defence equipment to 85-plus nations involving both subsystems/systems, which reached an all-time high of Rs 16,000 crore in FY23 from Rs 690 crore in FY14).
Major exports from India to Israel, for now, include precious stones and metals, chemical products and textiles. Israel exports pearls and precious stones, chemical and mineral/fertiliser products, machinery and electrical equipment, petroleum oils, and defence, machinery and transport equipment to India.
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