‘Make in India’ gets a radar lock, India-Israel joint venture plant breaks ground in Tamil Nadu
ELTX Systems Pvt. Ltd. — a joint venture between India's DCX Systems Ltd. (Bengaluru) and ELTA Systems (a subsidiary of Israel Aerospace Industries, IAI) — broke ground on an advanced radar manufacturing facility at the Shoolagiri Industrial Area, Tamil Nadu, on May 4, 2026.
The facility will manufacture, integrate, and test advanced radar systems including airborne radars and ground-based air surveillance systems for Indian armed forces and potential export customers.
The plant is scheduled for completion by April 2027, with production commencing shortly thereafter.
The joint venture was announced following the elevation of India-Israel bilateral ties to a "Special Strategic Partnership" during a high-level visit in February 2026.
The facility is aligned with the Atmanirbhar Bharat framework and will enable domestic manufacturing of radars that India currently imports.
India-Israel Defence Partnership — History and Current Status
India and Israel established formal diplomatic relations in January 1992. Despite initial hesitancy due to India's Cold War-era solidarity with Arab states and the Palestinian cause, defence cooperation deepened rapidly after the 1999 Kargil War, when Israel provided emergency supplies of laser-guided bombs and UAVs. India is today Israel's largest arms customer.
Key Details
- Diplomatic relations established: January 29, 1992.
- Kargil War (1999) was a turning point — Israel supplied Searcher UAVs, laser designation pods, and ammunition at short notice when Western suppliers were cautious.
- India-Israel "Vision on Defence Cooperation" — a 10-year roadmap signed between the two defence ministries — provides the framework for co-development and co-production.
- Bilateral ties elevated to "Special Strategic Partnership" in February 2026 during a high-level visit; Israel offered to share Integrated Air and Missile Defence (IAMD) technology including Iron Dome and Iron Beam systems.
- Key Israeli defence systems in Indian inventory: Barak-8/MRSAM (jointly developed with DRDO/BDL), Spike ATGM (Anti-Tank Guided Missile), Heron UAV, Searcher UAV, Harop loitering munition, Phalcon AWACS (on IL-76 aircraft).
The ELTX Systems radar plant is the latest and most concrete expression of the India-Israel defence industrial partnership, moving from buyer-seller to genuine co-production — the highest tier of defence cooperation.
IAI-ELTA Systems — Radar Technology
ELTA Systems is the electronics and radar division of Israel Aerospace Industries (IAI), which is Israel's largest aerospace and defence company (state-owned). ELTA is among the top global manufacturers of airborne, naval, and ground-based radar systems. Its ELM-2052 AESA (Active Electronically Scanned Array) radar, which is fitted on India's F-16 equivalent-class aircraft in several countries, and the ELM-2084 multi-mission radar (the sensor at the heart of the Iron Dome system's fire control) are among its flagship products.
Key Details
- IAI is headquartered in Ben Gurion International Airport area, Israel; founded 1953; fully state-owned.
- ELTA Systems' key radar families: EL/M-2032 (fighter aircraft fire control), EL/M-2052 (AESA radar), EL/M-2084 (multi-mission, Iron Dome), EL/M-2075 Phalcon (AWACS).
- DCX Systems (India, BSE/NSE listed) is a Bengaluru-based defence electronics integration company; already supplies wire harness assemblies and electronic sub-systems for Israeli and other platforms.
- ELTX Systems Pvt. Ltd.: the JV entity; focused on radar design, development, and manufacture.
- Radars produced may support multiple Indian programmes: Akash NG SAM system upgrades, naval radars, battlefield surveillance radars, and export to third countries.
ELTA's radar expertise and DCX's Indian manufacturing infrastructure combine in ELTX to produce radars domestically rather than importing them — directly reducing India's foreign exchange outflow on defence electronics imports.
Make in India in Defence — Strategic Benefits of JVs
Defence Joint Ventures (JVs) between foreign OEMs and Indian companies are a core mechanism in India's defence industrialisation strategy. The DAP 2020 framework allows foreign companies to hold up to 74% FDI in defence manufacturing (via automatic route up to 49%, beyond that through government approval route); 100% is permitted with government approval for state-of-the-art technology.
Key Details
- FDI in defence: automatic route up to 49%; government approval for 49–74%; above 74% requires government approval and is subject to access to modern technology criterion.
- JVs involving technology transfer are preferred over pure import contracts under DAP 2020's "Buy & Make (Indian)" and "Make" categories.
- The Defence Corridors — Uttar Pradesh Defence Industrial Corridor (UPDIC) and Tamil Nadu Defence Industrial Corridor (TNDIC) — were established to attract defence manufacturing investments; Shoolagiri (Tamil Nadu) is within the TNDIC geography.
- Tamil Nadu Defence Industrial Corridor aims to achieve investments of ₹20,000 crore and production of ₹20,000 crore by 2025; anchor investors include companies from India, USA, Israel, and South Korea.
The ELTX Systems plant at Shoolagiri directly contributes to the Tamil Nadu Defence Industrial Corridor's investment and production targets, representing the kind of high-value, technology-intensive JV the corridor was designed to attract.
- JV: ELTX Systems Pvt. Ltd. (DCX Systems + IAI ELTA Systems)
- Location: Shoolagiri Industrial Area, Tamil Nadu (within TNDIC)
- Groundbreaking: May 4, 2026
- Expected completion: April 2027
- IAI: Israeli state-owned aerospace company; established 1953
- ELTA Systems: radar/electronics subsidiary of IAI
- DCX Systems: Bengaluru-based, BSE/NSE listed
- India-Israel diplomatic relations established: January 29, 1992
- Bilateral ties elevated to "Special Strategic Partnership": February 2026
- FDI ceiling in defence (automatic route): 49%; above 49% requires government approval
- Tamil Nadu Defence Industrial Corridor (TNDIC): target ₹20,000 crore investment