Major defence pact: India, Russia seal $2 billion submarine deal as Putin visits India

PTC News Delhi: Ahead of Putin's highly anticipated India visit, New Delhi has sealed a deal with Moscow worth USD 2 billion to lease a nuclear-powered attack submarine from Russia, concluding nearly a decade long negotiations. 

According to the sources, the talks on the lease were stalled due to disagreements on the price. The two countries have now finalised terms, with Indian officials visiting a Russian shipyard in November to review progress at a submarine production facility. The delivery of the vessel is expected within two years however technical complexities could further delay the shipments. 

The Russian submarine will be part of the Indian Navy for a 10-year period under a lease agreement focused strictly on training, and it will not be allowed to participate in combat missions, sources confirmed. The primary purpose is to train naval personnel and enhance India’s expertise in operating nuclear-powered submarines as the country continues developing its own indigenous nuclear fleet.

Nuclear-powered submarines offer significant advantages over diesel-electric models — they can remain underwater for much longer, produce less noise, are generally larger, and are more difficult to detect, especially across the vast Indian and Pacific oceans. The agreement also covers maintenance and logistical assistance. India previously leased another Russian nuclear submarine for 10 years, which was returned in 2021 after the contract expired.

India currently has 17 diesel-electric submarines in service, while its strategic nuclear submarines form part of its nuclear deterrence program and are designed and manufactured domestically.

With rising strategic competition in the Indian Ocean region, global interest in nuclear-powered submarines has grown. Australia is developing them through the AUKUS pact with the US and UK, and South Korea is working with the US to advance similar capabilities.

Worldwide, only a few countries—the United States, the United Kingdom, France, China, and Russia—operate nuclear-powered submarines, though South Korea is progressing toward deployment through US cooperation.

India is moving ahead with building indigenous nuclear attack submarines designed to track enemy submarines and surface fleets. It is also set to commission its third ballistic missile submarine next year and continues constructing two additional indigenous nuclear attack submarines.

Prime Minister Modi has strengthened ties with Russia and China while maintaining strategic independence, particularly after U.S. President Donald Trump imposed 50% tariffs on Indian goods earlier this year. India is still negotiating with Washington to reduce those duties, imposed as part of pressure to cut Russian oil imports.