India and Russia Forge Strategic Defense Manufacturing Partnership Under Make-in-India Initiative

PM Narendra Modi and Russian President Vladimir Putin met during the 23rd India-Russia annual summit where significant defense agreements were reached.

Russia has committed to supporting joint manufacturing initiatives in India for military equipment and spare parts to maintain Russian-origin defense systems.

The strategic defense cooperation was a central topic during Friday's summit discussions between Prime Minister Narendra Modi and Russian President Vladimir Putin.

Indian armed forces have long experienced difficulties with delays in receiving critical spare parts and equipment from Russia, which has affected the maintenance of military systems purchased from the country.

According to the joint statement released after the summit, "Both sides agreed to encourage joint manufacturing in India of spare parts, components, aggregates and other products for maintenance of Russian origin arms and defense equipment under Make-in-India program through transfer of technology."

The statement also mentioned that both countries agreed to establish joint ventures not only to meet Indian armed forces requirements but also for potential exports to mutually friendly third countries.

The India-Russia defense partnership is evolving toward joint co-development and co-production of advanced defense technology and systems.

Defense Minister Rajnath Singh and his Russian counterpart Andrey Belousov had already met on Thursday, where they resolved to expand bilateral defense cooperation.

During their meeting, India expressed strong interest in acquiring additional batches of S-400 missile systems from Moscow to enhance its combat capabilities.

India had previously signed a USD 5 billion deal with Russia in October 2018 to purchase five units of the S-400 air defense missile systems, despite warnings from the US that this could trigger sanctions under the Countering America's Adversaries Through Sanctions Act (CAATSA).

Three squadrons have already been delivered to India, and the S-400 systems played a crucial role during Operation Sindoor. India may also consider acquiring S-500 missile systems from Russia.

During the Modi-Putin talks, both nations agreed to continue developing systems for bilateral trade settlements using their national currencies.

The leaders also agreed to maintain consultations on enabling interoperability between their national payment systems, financial messaging systems, and central bank digital currency platforms.

Modi and Putin expressed appreciation for the ongoing work toward a free trade agreement on goods between India and the Eurasian Economic Union, covering sectors of mutual interest.

They directed both sides to intensify efforts in negotiations for a mutually beneficial agreement on investment promotion and protection.

Additionally, India and Russia welcomed measures to ensure long-term fertilizer supply to India and discussed potential joint ventures in this sector.