Terma said a strategic Memorandum of Agreement on cooperation was signed Tuesday in India.
"This important agreement is not limited to the Indian market but includes opportunities to cooperate in other markets of common interest and the possibilities for sourcing work from BEL to Terma's ongoing business," said Jorn Henrik Levy Rasmussen, Terma's corporate vice president, Customers & Markets.
"We know BEL as a serious and highly experienced company which we are looking very much forward to cooperate with."
Bharat Electronics Limited is a government-owned Navratna company that designs, develops and manufactures a wide range of military communication systems, radars and sonars, naval systems, tank electronics, electro optics and electronic warfare systems for India's armed forces.
Terma develops and markets high-tech solutions, systems and products for defense and non-defense applications.