The Israeli company Rafael Advanced Defense Systems has confirmed the reports from November about India’s Defense Ministry canceling a major arms acquisition deal worth about half a billion dollars.

Rafael exhibition

Rafael exhibition Photo Credit: Alon Bason/Flash 90

Israel’s Rafael Advanced Defense Systems confirmed on Wednesday that India’s Defense Ministry has canceled the major arms acquisition deal worth about half a billion dollars that was signed about two years ago. The announcement comes just two weeks before Israeli Prime Minister Benjamin Netanyahu is set to fly to India for an official visit.

About a month and a half ago, the ministry announced its decision to cancel the deal, which included the purchase of at least 8,000 missiles and 300 missile launchers, because of India’s desire to strengthen its domestic missile development program and prioritize local industries.

A source in India closely familiar with the details of the deal said that for Rafael to be allowed to carry out the project, the company would have to commit to opening a local assembly plant in order to provide jobs in India.