U.S. export controls hurting Israeli defense sales to India

Israel is under threat of losing its biggest defense market, India in the face of mounting American military sales to New Delhi and U.S. export controls imposed on Israel, a news report from Jerusalem said. The Middle Eastern country receives substantial military technology from the U.S. Israeli Aircraft Industries (IAI) AI and other major Israeli defence companies have been urging the Israeli Defense Ministry to ease export controls arguing that the controls, demanded by the United States in 2005, were hampering marketing and technology transfer required to maintain exports. India is has concluded U.S. military sales deals worth an approximated $5 billion in the past few years and deals worth $50 billion are expected over the next 10 years. This has had Israel worried as its own exports would be hit. Specifically, India has ordered maritime early warning planes from Boeing, a deal which IAI was after. Similarly, Israeli artillery manufacturer, Soltam had been affected by India’s decision to buy artillery guns from BAE Systems’s American subsidiary. "(US President Barack) Obama is embracing the Indian Prime Minister and 40 to 50 billion USDs worth of deals are being wrapped up in one shot," Israel Aerospace Industries (IAI) President Itzhak Nissan was quoted in the report as saying. "Free competition is the key to success," Nissan said adding, "Regulations must be employed for special cases and not to hamper initiative." The IAI President said that the United States and European Union would intensify marketing in third countries amidst the reduction of defence budgets at home. In order to survive amid intense competition they argued that there is a need for proper coordination between Israeli companies as well as a rapid licensing process. "The main problem is coping with the giants," Nissan said noting, "They are becoming very hungry."