By Santanu Choudhury 

NEW DELHI-The U.S. is planning to sell two dozen anti-ship missiles to India for an estimated $200 million, underscoring the fast-expanding defense ties between the two nations.

The U.S. Department of Defense said the Boeing Co. Harpoon missiles would be used on Indian submarines.

The missiles will be sold directly to India by the U.S. government which means the Defense Department has to notify the U.S. Congress about the potential deal as mandated by law.

The U.S. Department of Defense said in a release that the proposed missile deal will, "strengthen the U.S.-India strategic relationship and to improve the security of an important partner which continues to be an important force for political stability, peace, and economic progress in South Asia."

The missile deal will be a new milestone in the growing defense ties between the U.S. and India. U.S. military sales to India have been rising in recent years, driven by deepening diplomatic relations between the world's two largest democracies.

India is spending billions of dollars to modernize its aging, Soviet-era equipment as regional rivals China and Pakistan also improve their military capabilities.

In recent years, India has become the world's largest arms importer. The country imported $1.9 billion worth of U.S. military hardware in 2013, making it the largest export market for U.S. arms makers, according to military consultancy IHS Jane's.

The moves to buy more military hardware from the U.S. shows India's attempt to diversify its supplier base away from its decades-long reliance on Russia for weapons.

According to the Stockholm International Peace Research Institute, Russia supplied 75% of the arms imported by India between 2009 and 2013, with the U.S. making up just 7%.

India's new government led by Prime Minister Narendra Modi is now planning to lift the foreign direct investment limits for defense joint ventures in the country to speed up the process of modernizing its military and to also save precious foreign exchange.

The Harpoon missiles package includes a dozen Block II missiles which can hit ships as well as land-based targets, according to Boeing. The company has sold more than 7,300 Harpoon and Harpoon Block II missiles to the U.S. Navy and more than 30 countries since 1971.

India has used the Harpoon missiles for its Jaguar fighter aircraft and P-8I maritime patrol aircraft, so it should "have no difficulty absorbing these additional missiles into its armed forces," the Defense Department said.

Write to Santanu Choudhury at santanu.choudhury@wsj.com

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