The USA is Israel's closest ally, and may this remain so as far into the future as the horizon and beyond. That being said, it is in Israel's interest to build military and economic ties with other parties in this fast-changing world. It is clear that China and India both have the potential to achieve superpower and sub-superpower status respectively and may achieve this within the next decade or two. Without damaging the very strong US-Israel ties, Israel needs to embrace the coming new world order. The continuing economic and military ties with India is a good strategic decision for both nations.
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from the article: Report: India, Israel to jointly develop $2.47b. missile system