India Finalizes $248 Million Defense Agreement with Russia for T-72 Tank Engines
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Synopsis
On March 7, the Indian Ministry of Defence confirmed a $248 million deal with Rosoboronexport for 1000 HP engines for T-72 tanks. This collaboration includes a Transfer of Technology to enhance domestic production, supporting India's defense capabilities and its Make in India initiative.
Key Takeaways
- $248 million deal for T-72 tank engines.
- Upgrade to 1000 HP engines enhances mobility.
- Transfer of Technology to boost local production.
- Defense production targets Rs 3 lakh crore by 2029.
- Defense exports could reach Rs 50,000 crore by 2029-30.
New Delhi, March 7 (NationPress) The Ministry of Defence has finalized a $248 million agreement with Russia’s Rosoboronexport for the acquisition of enhanced 1000 HP Engines for the Indian Army's T-72 tanks, available in fully assembled, completely dismantled, and semi-dismantled configurations.
This agreement also entails a Transfer of Technology (ToT) from Rosoboronexport to Armoured Vehicles Nigam Limited (Heavy Vehicle Factory), Avadi, Chennai, facilitating the integration and subsequent licensed production of the engines under the ToT framework to promote the ‘Make in India’ initiative within the defense sector.
The T-72 serves as the backbone of the Indian Army’s tank fleet, which currently operates with a 780 HP engine. Upgrading the existing T-72 tanks with 1000 HP engines will significantly improve the battlefield mobility and offensive capabilities of the Indian Army, according to the Defence Ministry.
With robust government backing, India’s defense production soared to a record Rs 1.27 lakh crore in 2023-24, marking a remarkable 174 percent increase from Rs 46,429 crore in 2014-15. The nation aims for Rs 3 lakh crore in defense production by 2029.
Recently, Defence Minister Rajnath Singh emphasized that India’s Aatmanirbhar initiative is “yielding the desired outcomes,” with the country on track to achieve Rs 50,000 crore in defense exports by 2029-30.
Rajnath Singh noted that the government's pursuit of self-reliance is proving effective, as defense exports, which stood at approximately Rs 600 crore a decade ago, surged to a record Rs 21,000 crore in the Financial Year 2023-24. He expressed optimism that this momentum will continue, projecting defense exports to reach Rs 50,000 crore by 2029-30.
Fueled by substantial government support and increasing private sector involvement, India’s defense sector production is anticipated to grow at a compound annual growth rate (CAGR) of about 20 percent from FY24 to FY29, as per a report by CareEdge Ratings.
The collaboration between governmental and private sector entities in India’s defense landscape has spurred advancements in arms and ammunition, aerospace, electronics, and naval technologies.
This partnership has been bolstered by initiatives such as ‘Make in India’ and liberalized FDI policies, which have strengthened domestic manufacturing capabilities, attracted international investments in defense innovation, and fostered significant growth in military equipment exports, the report highlights.
