India Finalizes $2 Billion Nuclear Submarine Deal with Russia Ahead of Putin's Visit

India maintains strong historical connections with Moscow while simultaneously developing deeper relationships with the United States.

According to sources familiar with the negotiations, India will invest approximately $2 billion to lease a nuclear-powered submarine from Russia. This agreement comes after nearly ten years of discussions and coincides with President Vladimir Putin's upcoming visit to New Delhi this week.

The submarine leasing talks had previously encountered delays due to price disagreements, according to individuals who requested anonymity due to the confidential nature of the discussions. Both parties have now reached an agreement, with Indian officials conducting a visit to a Russian shipyard in November. India anticipates receiving the vessel within two years, though the project's complexity may result in a longer timeline.

Putin is scheduled to arrive in India on Thursday for his first visit since Russia's full-scale invasion of Ukraine. He will meet with Prime Minister Narendra Modi to emphasize defense and energy cooperation between the two nations.

Modi has recently worked to strengthen relationships with both Russia and China, asserting India's strategic independence following US President Donald Trump's imposition of 50 percent punitive tariffs on Indian goods. Modi's administration is currently negotiating a trade agreement to reduce these duties, which were implemented as part of Trump's strategy to pressure India to cease Russian oil purchases while seeking leverage against Putin regarding the Ukraine conflict.

In advance of Putin's visit, India's Chief of Naval Staff Dinesh K Tripathi informed reporters this week that the commissioning of the attack submarine would occur soon, without providing specific details. He noted that the submarine would exceed the size of the two vessels currently in the navy's fleet.

Requests for additional information from India's Ministry of External Affairs and Ministry of Defence received no response. Similarly, Russia's Foreign Ministry, Ministry of Defence, and Rosoboronexport did not reply to comment requests.

According to a report by the Nuclear Threat Initiative, India has developed nuclear-capable submarine-launched ballistic missiles (SLBMs), theoretically providing it with the complete "triad" of atomic weapons deliverable from land, sea, and air.

Nuclear-powered vessels offer significant advantages over diesel-electric alternatives. They are typically larger, capable of remaining submerged for longer periods, and operate more quietly, making detection difficult, especially when patrolling the extensive areas of the Indian and Pacific oceans. Currently, India operates 17 diesel-powered submarines, as reported by NTI.

India's nuclear-powered submarines used for strategic deterrence are domestically built and designed to carry SLBMs. Additionally, India is preparing to construct nuclear-powered attack submarines, specifically designed to combat enemy submarines and surface vessels.

Under the lease terms, the Russian attack submarine cannot be utilized in warfare. It would assist India in training sailors and refining nuclear vessel operations as the country develops its own submarines.

The Russian leased vessel would serve India's Navy for 10 years. The previous Russian submarine, also leased for a decade, was returned in 2021. The lease contract would include maintenance provisions.

As interest in the Indian Ocean region grows, demand for such vessels has increased. Australia is collaborating with the UK and US to build similar submarines under the AUKUS security partnership. Until recently, only a few nations – the US, UK, France, China, and Russia – possessed the technology to deploy and operate nuclear-powered submarines.

South Korea is also working with the US to develop nuclear-powered submarines.

India continues to maintain its longstanding relationship with Moscow while pursuing deeper connections with the US. It has reduced its dependence on Russian weapons by acquiring more armaments from the US and European countries.

Nevertheless, Modi's decision to rely on Russia for nuclear submarines demonstrates India's comfort with Moscow regarding critical platforms, despite criticism from Trump.

"They have bought vast majority of their military equipment from Russia and are Russia's largest buyer of energy with China," Trump stated in a Truth Social post in July. The US has pressured India to stop purchasing Russian oil, introducing a 25 percent "secondary tariff" on US imports of Indian goods from late August.

According to Tripathi, India's third ballistic missile submarine is expected to join the nuclear forces next year. Additionally, Bloomberg News reported that India is constructing two nuclear-powered attack submarines.