India, Russia agree on joint production of military equipment

Russia has agreed to promote joint manufacturing of military hardware and critical spare parts in India, marking a significant boost to the countries’ long-standing defence ties. The decision was announced on Friday following summit-level talks between Prime Minister Narendra Modi and Russian President Vladimir Putin, where strengthening defence cooperation emerged as a key focus area.For years, the Indian armed forces have flagged persistent delays in the supply of essential spares from Russia, resulting in maintenance challenges for major platforms sourced from Moscow. The new agreement aims to address this gap directly.
According to a joint statement, "Both sides agreed to encourage joint manufacturing in India of spare parts, components, aggregates and other products for maintenance of Russian-origin arms and defence equipment under the Make-in-India programme through transfer of technology." It added that the two nations would work toward setting up joint ventures catering not only to the needs of the Indian military but also for export to friendly third countries.The defence partnership, the statement noted, is being reshaped to prioritise joint development and co-production of advanced defence systems and technologies.
The latest push comes a day after Defence Minister Rajnath Singh met his Russian counterpart, Andrey Belousov, where both sides reaffirmed plans to broaden defence cooperation. During these discussions, India reportedly expressed interest in acquiring additional batches of the S-400 air defence system to enhance its operational capabilities.India had signed a USD 5 billion agreement with Russia in 2018 for five units of the S-400 system, despite warnings from the United States about possible sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA). Three squadrons have already been inducted, and the S-400s played a key role during Operation Sindoor. India is also exploring the possibility of procuring Russia’s next-generation S-500 system.
Beyond defence, Modi and Putin reviewed progress on wider economic and strategic initiatives. Both sides agreed to continue developing mechanisms for bilateral trade settlements using national currencies. Discussions also covered interoperability between payment systems, financial messaging architecture and the potential integration of central bank digital currency platforms.The leaders welcomed ongoing efforts toward a Free Trade Agreement on goods between India and the Eurasian Economic Union and called for a renewed push on negotiations for a mutually beneficial investment protection pact.India and Russia further noted steps taken to ensure stable long-term fertiliser supplies to India and discussed the prospect of establishing joint ventures in the sector.