Israel has signed a USD 1.1 billion contract to supply an upgraded tactical air defence system to India, with delivery expected by 2017, an Israeli official said on Monday.

The sale of the Barak-8 systems came as India's army chief, General Deepak Kapoor, held high-level talks in Israel, India's biggest defence supplier.

Made by state-owned Israel Aerospace Industries Ltd., the Barak-8 is designed for use aboard ships and can shoot down incoming missiles, planes and drones. The most advanced version can be also deployed on land, the Israeli official said.

India has already acquired an earlier generation of the Barak system, the official said.

The Barak-8 contract was signed in April, and delivery of the systems will take place "over the next six to eight years".

The Indian embassy in Tel Aviv had no immediate comment.