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Friday, January 16, 2026

India to Sign Major Defence and Trade Deals with Russia and US

Key Takeaways

  • India to sign Rs 10,000 crore S-400 missile deal with Russia
  • US-India trade agreement includes tariff reductions from 50%
  • Both deals expected to be finalized in coming months

India is poised to strengthen its global partnerships through two major agreements with Russia and the United States, marking significant progress in both defence and trade sectors.

Enhanced Defence Partnership with Russia

India is finalizing a fresh Rs 10,000 crore deal with Russia for additional S-400 Triumf air defence system missiles. This decision follows the system’s proven performance during Operation Sindoor against Pakistan, where it effectively neutralized incoming threats including fighter jets, drones, and missiles.

The S-400 system, developed by Russia’s Almaz-Antey, ranks among the world’s most advanced long-range surface-to-air missile platforms. Key capabilities include:

  • Strike range: 120 to 400 kilometres
  • Radar detection range: 600 kilometres
  • Speed: 4,800 metres per second
  • Can intercept ballistic missiles at altitudes up to 60 km
  • Deployment time: 5-10 minutes

S-400 Delivery Timeline

India’s original 2018 agreement with Russia involved five S-400 squadrons worth Rs 40,000 crore. Three squadrons have already been deployed along borders with China and Pakistan. The remaining two squadrons, delayed due to the Russia-Ukraine war, are now expected by February and September next year.

Despite earlier US warnings against the S-400 deal, India proceeded based on strategic defence priorities.

Discussions are also underway for three additional S-400 squadrons, potentially finalized during Russian President Vladimir Putin’s proposed December visit to India.

US-India Trade Breakthrough

Simultaneously, India and the United States are close to sealing a trade deal that includes reducing tariffs previously set at 50% on certain Indian goods. US President Donald Trump has agreed to revisit these tariffs following negotiations with Indian officials.

This agreement is expected to significantly boost bilateral trade between the two nations.

Together, these defence and trade agreements represent a strategic balancing act for India, enhancing missile capabilities while easing trade tensions with key economic partners.

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