The radar will be mounted on a Russian cargo aircraft

Mr Shalom was speaking after meeting Indian Defence Minister George Fernandes in Delhi.

The $1bn deal involves India, Israel and Russia and was signed in October after Jerusalem received the go-ahead from the United States.

Defence analysts say the Phalcon system will give India a greater edge in conventional weaponry over its regional rivals, China and Pakistan.

High powered

The deal had earlier been blocked by the US, which said it was concerned about India and China acquiring Phalcons.

Mr Shalom said that Israel needed Washington's permission for the deal to go ahead, because their defence industries were closely linked.

Under the terms of the agreement, Israel will buy Ilyushin-76 cargo aircraft from Uzbekistan.

The planes will then be sent to Russia to be fitted with new high-powered engines.

After other structural modifications, the aircraft will be sent to Israel and mounted with cutting-edge avionics before being handed over to India.

Israel is now India's second largest defence supplier after Russia, with armament sales from Tel Aviv to Delhi touching $1.25bn in 2001.

Bilateral trade more than doubled from $534m in 1997 to $1.27bn in 2002, mostly in diamonds, agricultural machinery and chemical products, according to the Confederation of Indian Industry.

Mr Shalom also held talks on Wednesday with the Indian prime minister Atal Behari Vajpayee.