India will buy nearly $2 billion worth of weapons technology from Israel in what´s being described as the "largest defense contract" ever signed by the military exporting giant.

The deal will see state-owned Israel Aerospace Industries provide India with an advanced defense system of medium-range surface-to-air missiles, launchers and communications technology, the company said in a statement Thursday.

The "mega" missile agreement is "considered to be the largest defense contract in Israel´s defense industries´ history", the company said.

The Israeli firm will also supply a naval defense system including long-range surface-to-air missiles for India´s first aircraft carrier, which is still under construction.

Comment was not immediately available from India´s defense ministry.

Israel Aerospace Industries said some components will be assembled in India, in line with Prime Minister Narendra Modi´s push to reduce reliance on costly imports.

Modi´s government has raised the limit on foreign investment in the defense sector and encouraged tie-ups between foreign and local companies under a ´Make in India´ campaign.

India -- the world´s largest defence importer -- has been investing tens of billions in updating its Soviet-era military hardware to counter long-standing tensions with regional rivals China and Pakistan.

India has signed several big-ticket defense deals since Modi´s Bharatiya Janata Party stormed to power in 2014.

Israel is a top weapons exporter, with sales last year surging to $6.5 billion.

India is a top market for its arms, as New Delhi has turned increasingly away from traditional ally Russia for its military hardware.

Last year India signed a contract to buy 36 Rafale twin-engine fighter jets from France for 7.9 billion euros ($8.8 billion) after major delays and obstacles over the cost and assembly of the planes in India.