Israeli PM Benjamin Netanyahu with his Indian counterpart, Narendra Modi, in New York City in September 2014. Photo: Avi Ohayon / GPO via Flickr.

Indian Prime Minister Narendra Modi approved on Thursday a $2.5 billion deal to acquire an Israeli aerial defense system for his country’s military, the Mail Today newspaper reported.

According to the report, India plans to use the medium-range surface-to-air missile system (MR-SAM) to defend its airspace from “enemy aircraft, drones, surveillance aircraft and AWACS planes.” The system — jointly developed by Israel Aerospace Industries and India’s Defense Research and Development Organization — is a land-based version of the Barak 8.

The deal will see the Indian Army receive 40 units of the system, which will be ready for deployment by 2023.

Israel and India are currently celebrating the 25th anniversary of the 1992 establishment of full diplomatic ties between the two countries. They currently enjoy a burgeoning relationship, particularly in the defense field.

In November, Israeli President Reuven Rivlin traveled to India, just over a year after his Indian counterpart, President Pranab Mukherjee, visited Israel.

Earlier this month, it was reported that an Israeli-designed security system had been installed to protect the Indian port city of Mumbai.