India has cancelled a ban on the Israel Aerospace Industries and the Rafael Advanced Defence Systems Ltd, Israel's Globes news site reported on Sunday.
India had blacklisted the two companies and barred making arms deals with them over bribery charges.
However, according to the site, India's Central Bureau of Investigation (CBI) filed a lawsuit demanding the close of the criminal investigation against the two companies.
Although the two companies were blacklisted in India since a 2006 case involving offering bribes to Indian officials in exchange for securing arms deals, Globes said India continued pursue arms deals with them.
In April 2017, India and Israel Aerospace Industries signed a $2 billion deal under which the Israeli company would supply India with Barak 8 surface to air missiles.