Hebrew media outlets have revealed that several Israeli weapons manufacturers are actively supporting India in its military tensions with Pakistan — a move that has significantly boosted their financial gains.
In a detailed report for Globes, Israeli journalist Eitan Gerstenfeld noted that Arbit Systems, a lesser-known but rapidly growing Israeli defence company, has a long-standing military relationship with India. In 2015, Arbit entered a joint venture with the Indian state-owned defence firm BEL, and since then, its revenue has steadily surged.
By 2024, the Indian portfolio alone accounted for one-third of Arbit’s revenue, estimated at 126 million shekels. The partnership peaked with a multi-year deal expected to reach $200 million, and the company now participates in every Indian defence tender through this alliance.
War Profits and Market Boom
The ongoing tensions between India and Pakistan have, according to the report, positively impacted Arbit’s order volume, with the company’s valuation jumping 200%, now worth 2.7 billion shekels. This growth has been driven in part by Israeli military demand for Arbit’s detonation fuses used in mortars and tank shells, especially during its recent assault on Gaza.
Arbit’s backlog of orders by the end of 2024 reached 1.2 billion shekels — a fivefold increase. The company recently raised capital worth 97 million shekels from institutional investors, diluting the stake of its main shareholder Tzvi Levy to 46.1%. Levy had acquired the company in 2007 for a few million shekels and now retains shares worth over 1 billion.
Israel: India’s Top Arms Supplier
According to data from the Stockholm International Peace Research Institute (SIPRI), India was the largest export market for Israeli weapons between 2020 and 2024, accounting for nearly one-third of total Israeli arms exports.
The major players in this market are Israel Aerospace Industries (IAI) and Elbit Systems. Just two months ago, IAI launched a local Indian subsidiary, collaborating with India’s government-run R&D body to co-develop the Barak 8 air defence system.
Meanwhile, Elbit has partnered with Adani Defence, a subsidiary of the conglomerate that recently purchased Haifa Port in Israel. One notable joint product is the Drishti-10 Starliner, a locally built version of Israel’s Hermes 900 drone.
Arms Sales Soar in Global Conflict Era
The South Asian escalation comes amid a global boom in military budgets, especially in Europe due to the Ukraine war. Israeli defence companies are cashing in.
Elbit, Israel’s largest listed weapons firm, saw its revenues rise by 14% to $6.8 billion, with net profits jumping 31% to $392 million. The company’s market cap now exceeds 65 billion shekels.
Other Israeli defence firms have also soared:
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- NextVision, a maker of UAV-mounted cameras, has skyrocketed over 1800% since its 2021 IPO.
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- Beit Shemesh Engines, Ishaut, and IMCO are also benefiting from growing investor interest amid the war on Gaza.
Pakistan Claims Israeli Weapons Used in Airstrikes
Military analyst Dan Arkin, writing for Israel Defense, confirmed that Pakistani forces intercepted and downed 25 Israeli-made Harop loitering munitions launched by India during recent aerial clashes.
The Harop — designed to suppress enemy air defences — is a kamikaze drone that homes in on hostile radio frequencies. It carries a 25 kg warhead, can loiter for up to six hours, and has a range of 600 miles. Pakistan reported that the drones targeted its air defence systems near Lahore, and even released footage of soldiers recovering Israeli missile debris.
Previously, the Harop was used by Azerbaijan against Armenia in the 2021 Nagorno-Karabakh conflict — with Israeli military backing at the time.
