Israeli company says India nixes $500M arms deal

An Israeli arms company says India cancelled a $500 million deal ahead of a visit by Prime Minister Benjamin Netanyahu.

Rafael Advanced Defense Systems Ltd. said in a statement Tuesday the Indian Defense Ministry cancelled the Spike missile deal. It said the cancellation came before the contract was signed and despite the company having fulfilled all its requirements. It did not give a reason for the cancellation.

India is the centerpiece of Netanyahu's initiative to cultivate ties with developing nations that have traditionally supported the Palestinians.

However, India favored the Palestinians by voting in support of a U.N. resolution last month denouncing the Trump administration's recognition of Jerusalem as Israel's capital.

Netanyahu hosted India's prime minister last year and he is set to visit India later this month.