India has imported military hardware worth $2.9 billion from Israel over the last decade, including radars, surveillance and combat drones, and missiles.
Contracts worth Rs 473 crore and Rs 329 crore were signed with Jupiter Wagons and BEML, respectively.
This will include HELINA anti-tank guided missiles, VSHORAD missiles, and Brahmos Launcher and Fire Control System (FCS) for the Shivalik class of ships and next-generation missile vessels (NGMVs) for the Indian Navy.
The council approved procurement of rough terrain fork lift trucks, bridge laying tanks, wheeled armoured fighting vehicles with anti-tank guided missiles and weapon locating radars.
Share of domestic procurement in defence capital outlay is estimated to rise to 68 percent in FY23
Under the amendments, training and quality assurance related services have been kept out but MRO or design or R&D and two more service related offsets have been bought back.
"There is a need to de-bottleneck issues related to defence offset and defence procurement. There exist huge potential for the Indian defence industry if the defence offset contracts can be expedited," a CII statement quoted Sujith Haridas, Deputy Director General, CII as saying.
The new defence procurement policy is mainly to make defence procurement transparent and also promote the domestic industry.