The contract will be carried out with Bharat Electronics Ltd, which serves as the main contractor in the project as part of India's "Make in India" policy.
Israel's Barak 8 long-range surface-to-air missile system was successfully tested last week aboard an Indian navy ship. During the trial scenario an airborne threat was identified and an intercepting missile was launched, which destroyed the target.
In April Israel Aerospace Industries struck a deal worth almost $2 billion to supply the Indian Army and Navy with missile defence systems. Israel is one of the top three arms suppliers to India.