Spike is a man-portable "fire and forget missile" that can hit moving targets such as tanks. This allows the soldier firing the missile to quickly move for cover.
Until, India gets its own version, Pakistani soldiers would have an edge. Presently, they have portable anti-tank missiles that can strike tanks and bunkers from a distance of 3-4kms, while India's missiles have a 2kms range.
Why exit contract?
But, why is India not keen on buying them?
India had opted for Israel's Spike over the Javelin missiles that Washington offered in 2014. Israeli manufacturers even set up a missile manufacturing facility with India's Kalyani group in Hyderabad.
But, why is India against buying them now?
The defense ministry has now decided to back the state-owned DRDO. Reportedly, DRDO has promised a similar world-class missile within four years.
Will this termination cast a shadow on Netanyahu's India tour?
However, it seems that India's exit from the deal won't affect Netanyahu's upcoming India tour. Rafael's CEO will also accompany the PM.
Moreover, Rafael's Hyderabad facility won't be scrapped. It can still accommodate a number of projects that Rafael has undertaken with Indian companies.
In recent years, Israel has become one of India's major defense supplier, selling about $1bn of military equipment every year.