India to Lease $2 Billion Nuclear Sub from Russia, Deal Finalized Ahead of Putin Visit
India Leases $2B Russian Nuclear Sub After Decade of Talks

In a significant boost to its naval capabilities, India has finalized a landmark defense agreement to lease a nuclear-powered attack submarine from Russia for approximately $2 billion. The deal concludes nearly a decade of negotiations and is set to be underscored during Russian President Vladimir Putin's visit to New Delhi this week, his first since the full-scale invasion of Ukraine.

A Decade-Long Negotiation Concludes

According to sources familiar with the private discussions, talks for leasing the advanced submarine had stalled repeatedly over the years, primarily due to protracted price negotiations. The breakthrough came recently, with Indian officials visiting a Russian shipyard in November to finalize terms. While the Indian Navy expects to take delivery of the vessel within the next two years, the inherent complexity of the project means this timeline could extend.

The timing aligns with President Putin's arrival in India on Thursday, where he will meet Prime Minister Narendra Modi to reinforce the enduring defense and energy partnership between the two nations. This visit occurs against a complex geopolitical backdrop, where India has asserted its strategic autonomy, maintaining strong ties with Moscow while navigating relations with Washington.

Strategic Significance and Training Role

The leased Russian submarine will be larger than the two nuclear-powered vessels already in the Indian Navy's fleet. However, under the lease terms, it cannot be deployed for combat. Its primary role will be to train Indian sailors and refine nuclear submarine operations as India accelerates its own indigenous construction program. The lease period is set for 10 years and includes maintenance, mirroring the structure of a previous 10-year lease for a Russian submarine that concluded in 2021.

This move is pivotal for India's naval strategy. Nuclear-powered submarines are vastly superior to their diesel-electric counterparts; they can operate submerged for months, are quieter, and are harder to detect, making them ideal for patrolling vast oceanic areas like the Indian and Pacific Oceans. India currently operates 17 diesel-powered submarines.

India's Growing Nuclear Submarine Ambitions

The lease supports India's broader ambitions to master nuclear submarine technology. The nation already indigenously builds nuclear-powered submarines designed to carry nuclear-capable Submarine-Launched Ballistic Missiles (SLBMs), completing its nuclear triad. India's third ballistic missile submarine is slated to join its nuclear forces next year, and the country is also building two nuclear-powered attack submarines.

This development comes as the Indian Ocean region attracts greater strategic attention. Initiatives like the AUKUS security partnership, through which Australia, the UK, and the US are collaborating on nuclear-powered submarines, highlight the growing demand for such capabilities. Presently, only a handful of nations—the US, UK, France, China, and Russia—possess the technology to deploy and operate these advanced vessels.

While India has diversified its defense imports, reducing reliance on Russian hardware by sourcing more from the US and Europe, this submarine deal underscores a continued comfort level with Moscow for critical, high-technology platforms. The deal also unfolds amid US pressure, including punitive tariffs, for India to curb its purchases of Russian oil. Despite this, New Delhi continues to balance its relationships, pursuing deeper links with the West while maintaining its longstanding defense partnership with Russia.