India has signed its biggest defence deal with Israel for the purchase of a state-of-the-art air defence system at a whopping cost of $1.4 billion (Rs 7,042).

Israel Aerospace Industries (IAI) has officially acknowledged that the defence deal between the two countries was inked on February 27 under which Israel will develop and manufacture seaborne and shore-based systems against missile attack on India, business daily 'Globes' reported.