India is considering buying spy planes from Israel despite the cancellation of a similar deal between China and the Jewish state under intense pressure from the United States, reported Haaretz newspaper.
It said contacts have been underway for several months between state-owned Israel Aircraft Industries and defense ministry officials and their Indian counterparts for a 250-million-deal involving two Phalcon reconnaissance aircraft.
Haaretz said Israeli officials feared that the United States would try to block the deal because of fears of increased tensions with China.
Earlier this month, Israel shelved a similar 250 million-dollar deal with China for a Phalcon Airborne Warning and Control System (AWACS) because of US concerns it could upset the military balance between China and Taiwan, said AFP.
The agency said that the United States has begun to remove restrictions it had imposed on military cooperation with Israel over the Phalcon deal with China and quoted a senior military official as saying defense ties appeared to be returning to normal.
Meanwhile, on Saturday, the Indian embassy in Cairo denied reports it had pledged nuclear cooperation with Israel, which has sparked concern in the Arab world, according to the agency - (Several Sources)
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