‘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) — b...
What Happened
- 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.
Static Topic Bridges
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.
- 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).
Connection to this news: 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.
- 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.
Connection to this news: 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.
- 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.
Connection to this news: 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.
Key Facts & Data
- 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