ndia and Russia on Friday announced a significant expansion of their defence partnership, agreeing to jointly manufacture military hardware, spare parts, and advanced defence systems under the Make-In-India initiative. The agreement came during the 23rd India-Russia Annual Summit between Prime Minister Narendra Modi and Russian President Vladimir Putin.
Joint Production to Fix Long-Standing Spare Parts Delays
A major concern for India’s armed forces has been the slow supply of critical spares for Russian-origin equipment, which impacts the operational readiness of systems used by the Army, Navy, and Air Force.
According to a joint statement, both countries will encourage co-production of spare parts, components, aggregates, and maintenance equipment in India through technology transfer. This is seen as a major step toward reducing dependency on imports and ensuring faster maintenance cycles.
Joint Ventures for Indian Forces and Friendly Nations
India and Russia also agreed to set up joint ventures to manufacture defence equipment not only for India’s military needs but also for export to “mutually friendly third countries.”
This signals a shift in the partnership from a buyer-seller relationship to co-development and co-production of advanced defence technologies.
Interest in More S-400 Systems; Possible Future S-500 Purchase
On Thursday, Defence Minister Rajnath Singh met his Russian counterpart Andrey Belousov, where India expressed interest in acquiring additional S-400 missile defence systems.
India had signed a USD 5 billion agreement in 2018 for five S-400 units. Three squadrons have already been delivered, and the system played a key role during Operation Sindoor.
India may also explore the procurement of the next-generation S-500 air defence system.
Boost to Bilateral Trade Using National Currencies
Modi and Putin also agreed to continue strengthening mechanisms for bilateral trade settlement through rupee-ruble payments, interoperability of national payment systems, secure financial messaging, and future cooperation on central bank digital currencies.
Progress on Free Trade Agreement With Eurasian Economic Union
Both leaders welcomed progress on a proposed India-EAEU Free Trade Agreement, which could open new avenues for trade in goods across strategically important sectors.
They also directed negotiators to speed up talks for a mutually beneficial investment protection agreement.
Cooperation in Fertiliser Supply and Joint Ventures
India and Russia also agreed to ensure long-term fertiliser supplies to India and explore the creation of joint ventures in the fertiliser sector, further strengthening economic ties.
