NEW DELHI—U.S.-based Honeywell International Inc. and India's Tata Power Ltd. said Monday they have signed an agreement to produce a navigation system in India to cater to the needs of the south Asian nation's military.

Using technology from Honeywell Aerospace, Tata Power's Strategic Electronics Division will assemble the Tactical Advanced Inertial Navigator, or TALIN, in India, according to a statement issued by both companies. The assembly of the Talin would mark the debut production of such a system in the country, it said.

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