India is close to finalising a major defence deal worth around $900 million (about ₹7,500 crore) with Israel Aerospace Industries (IAI) for six aerial refuelling aircraft. The agreement is expected to strengthen the Indian Air Force’s long range operational capabilities and improve its ability to conduct extended missions.
Under the proposed contract, IAI will convert six Boeing 767 passenger aircraft into advanced aerial refuelling tankers. A key feature of the project is that at least 30% of the work is expected to be carried out in India through local companies led by Hindustan Aeronautics Limited (HAL), supporting the government’s push for greater domestic manufacturing and technology transfer.
The new aircraft are intended to replace the Indian Air Force’s ageing Russian-origin Il-78 tanker fleet, which has faced maintenance and serviceability challenges in recent years. Defence officials believe the upgraded fleet will significantly improve mid-air refuelling capacity, allowing fighter jets such as Rafale and Su-30MKI to operate over longer distances and remain in the air for extended periods.
The deal would further strengthen defence ties between India and Israel, which have expanded steadily over the years through cooperation in air defence systems, missile technologies and unmanned aerial vehicles. For IAI, the contract would represent one of its most significant defence agreements with India.
