India seals $25B Russia defence deal amid military modernisation push
India has approved a massive defence deal with Russia worth $25 billion. The agreement covers upgrades, new equipment, and long-term collaboration in military technology. This move comes as part of India's broader push to modernise its armed forces.
The country also finalised separate contracts for French Rafale jets and US-made P-8I aircraft, totalling $40 billion in defence spending this fiscal year alone. The latest India-Russia package includes a life-extension programme for India's Su-30 fighter jets. Alongside this, the deal covers transport aircraft, strike drones, and artillery systems. Additional purchases feature armour-piercing tank rounds, aerial surveillance gear, and hovercraft for the coast guard.
A smaller contract, valued at $47 million, was signed for Tunguska anti-aircraft missile systems. India had earlier approved the acquisition of S-400 missile defences from Russia, reinforcing its air defence capabilities.
Beyond hardware, the two nations discussed expanding energy ties. Talks included restarting direct LNG shipments and doubling Russian crude oil exports to India. Meanwhile, Russia considered reintroducing a temporary ban on its own gasoline exports to control rising domestic fuel prices.
Over the past five years, India and Russia have shifted from a simple buyer-seller relationship to joint research, development, and production. Key projects now include the BrahMos cruise missile, local assembly of T-90 tanks, and AK-203 rifle manufacturing. Recent advances also cover co-production of spare parts for Russian-origin equipment. Two new frigates, INS Tushil and INS Tamal, built at Russian shipyards, are set for delivery by July 2025.
India's defence spending reflects its position as the world's fifth-largest military budget and second-largest arms importer. This fiscal year alone, the government approved 55 defence proposals worth $71 billion, signalling a major push for self-reliance under the Aatmanirbhar Bharat initiative. The $25 billion deal strengthens India's military capabilities while deepening its defence partnership with Russia. Joint production projects and technology transfers will reduce reliance on imports over time.
Energy discussions between the two countries could also reshape trade flows, particularly if Russian crude and LNG exports to India expand. The agreements mark a significant step in India's long-term defence and industrial strategy.
