India closes $2 billion nuclear submarine deal as Putins visit: Why it matters

New Delhi: India is set to pay about 2 billion dollar to lease a nuclear-powered submarine from Russia, people familiar with the deal said. The deal, finalised after nearly a decade of negotiations, aligns with President Vladimir Putin’s visit to New Delhi this week.

Talks for leasing the attack submarine from Russia had stalled over the years because of price negotiations, the people said, asking not to be identified because the discussions are private. The two sides have now agreed on the deal, with Indian officials visiting a Russian shipyard in November, Bloomberg reported. India expects to take delivery of the vessel within two years, although the complexity of the project means it could be later, they said.

Putin is scheduled to arrive in India on Thursday for his first visit since Russia’s full-scale invasion of Ukraine. During the trip, he will meet Prime Minister Narendra Modi to reinforce the countries’ long-standing defense and energy ties, according to reports.

India has developed nuclear-capable submarine-launched ballistic missiles (SLBMs), giving it, in principle, a full nuclear triad with the ability to deliver atomic weapons from land, sea, and air, according to a report by the Nuclear Threat Initiative.

Nuclear-powered submarines offer significant advantages over diesel-electric models. They are generally larger, can remain submerged for much longer durations, and operate more quietly, making them more difficult to detect—especially while patrolling the expansive waters of the Indian and Pacific Oceans.

According to the terms of the agreement, the Russian-designed submarine cannot be used in combat. Instead, it will help India train sailors and refine nuclear-submarine operations as the country develops its own vessels, the people said. The leased Russian submarine will remain with the Indian Navy for 10 years. The previous Russian vessel, also leased for a decade, was returned in 2021. The new contract will include maintenance support, they added.

As strategic focus intensifies on the Indian Ocean region, nuclear-powered submarines have grown increasingly significant. Australia is partnering with the UK and the US to build similar vessels under the AUKUS security pact. Until recently, only a handful of nations—the US, UK, France, China, and Russia—possessed the technology to deploy and operate nuclear-powered submarines. Reports now suggest that South Korea has also joined the US to develop such submarines.

While India maintains good relations with Ukraine and has been strengthening ties with the US, it has simultaneously reduced its dependence on Russian weaponry by acquiring more arms from the US and European nations. However, Modi’s decision to rely on Russia for nuclear submarines underscores India’s continued comfort with Moscow on critical defence platforms, despite criticism from Trump. According to Tripathi, India’s third ballistic missile submarine is scheduled to join its nuclear forces in 2026. Additionally, the country is building two nuclear-powered attack submarines.