Vladimir Putin visit: India to lease $2 billion Russian submarine, boosting naval power, says report

India has reached a $2 billion agreement to lease a nuclear-powered attack submarine from Russia, coinciding with President Vladimir Putin's visit to New Delhi this week. The deal, which has been under negotiation for over a decade, underscores the strengthening defence and energy ties between the two countries. The vessel will be leased for ten years and is intended for training purposes, with India expected to take delivery within two years, Bloomberg News reported on Thursday.

Officials familiar with the matter said the agreement covers maintenance and support throughout the lease period, further enhancing India's naval operational readiness in the Indian Ocean region.

The lease of the Russian submarine comes as India seeks to expand its strategic autonomy following trade tensions with the United States and pressure to reduce Russian oil purchases. Prime Minister Narendra Modi has emphasised the importance of maintaining strong relations with both Russia and China, while pursuing policies that serve Indian interests. As President Putin arrives in India, the nations are preparing to sign multiple inter-governmental and commercial agreements. The submarine will assist India in training sailors and refining nuclear submarine operations, a move seen as critical for its future defence posture.

Addressing reporters ahead of the visit, India's Chief of Naval Staff Dinesh K. Tripathi stated that the commissioning of the attack submarine would be expected soon, without providing details. The new submarine is expected to be larger than those currently in the Indian Navy's fleet, signalling a step forward in India's naval modernisation efforts.

The Nuclear Threat Initiative described the deal's strategic context, highlighting India's ongoing efforts to build a credible nuclear deterrent. The organisation noted that India has developed the so-called triad of atomic weapons that can be delivered from land, sea and air. This triad enables India to maintain a flexible and survivable nuclear posture. India currently operates 17 diesel-powered submarines, but nuclear-powered vessels offer superior endurance and stealth, factors critical to projecting power in the Indian and Pacific Oceans.

The lease agreement specifies that the Russian submarine cannot be used in combat, according to individuals familiar with the terms. The leased submarine would allow India to advance its nuclear-boat operations as it constructs its own vessels domestically. The previous Russian submarine lease concluded in 2021, and the current arrangement includes provisions for ongoing maintenance.

International reactions to India's sustained partnership with Russia have been mixed. US President Donald Trump criticised New Delhi's continued reliance on Moscow, stating, "They have bought the vast majority of their military equipment from Russia and are Russia's largest buyer of energy with China," Trump said in a Truth Social post in July. The United States has imposed a 25% secondary tariff on Indian goods in response to ongoing Russian oil imports. India's defence strategy remains focused on balancing international partnerships while enhancing national security through modern technology acquisitions.

Looking ahead, Indian naval expansion includes plans to induct a third ballistic missile submarine and build two additional nuclear-powered attack submarines. As Tripathi remarked, India's third ballistic missile submarine is expected to join the nuclear forces next year.

As reported by Bloomberg News, India is building two nuclear-powered attack submarines. These developments position India alongside a small group of nations with nuclear-powered submarine capabilities, as global interest in advanced naval deterrence continues to rise.