The Indian Ministry of Defense has finalized a $248 million agreement with Russia’s state-owned Rosoboronexport to procure advanced engines for its fleet of T-72 tanks, marking a significant step in modernizing one of the Indian Army’s cornerstone armored platforms.
Indian T-72 tank
Photo credit: Reddit
Signed on March 7, 2025, the deal encompasses the supply of 1,000-horsepower engines designed to replace the existing 780-horsepower units currently powering the T-72s, promising enhanced battlefield mobility and operational effectiveness.
Beyond the immediate hardware acquisition, the contract includes a transfer of technology to India’s Armoured Vehicles Nigam Limited in Avadi, Chennai, aligning with the nation’s “Make in India” initiative to bolster domestic defense manufacturing capabilities.
Indian Defence Ministry signs $ 248 million Deal for procurement of engines for T-72 Tanks for Indian Army with Russia's Rosoboronexport pic.twitter.com/mlxN4xre3r
— Sidhant Sibal (@sidhant) March 7, 2025
This development emerges against a backdrop of shifting global dynamics, with India navigating its long-standing defense ties with Russia amid growing engagement with Western partners like the United States. The decision to upgrade the T-72 fleet, a Soviet-era design that has served as the backbone of India’s armored forces since the late 1970s, reflects a pragmatic approach to maintaining a robust military posture.
The new engines, to be delivered in fully assembled, semi-knocked-down, and completely knocked-down conditions, will equip the roughly 2,400 T-72 tanks in India’s arsenal with greater power and reliability, ensuring their relevance in contemporary combat scenarios.
The origins of this deal trace back to India’s strategic imperatives and the evolving needs of its military. The T-72, first inducted during the Cold War era, has undergone multiple upgrades over the decades to remain a viable asset.
India Signs USD 248 Million Deal With Russia For Tank Engines
Ministry of Defence has signed a contract with Russia‘s state-run Rosoboronexport (RoE) worth $ 248 million for procurement of 1000 HP Engines for T-72 Tanks in fully formed, completely knocked down
— Umesh Mhambrey (@Umesh99912664) March 8, 2025
However, its original 780-horsepower engine, while serviceable, has increasingly lagged behind modern standards, particularly in challenging terrains like the deserts of Rajasthan or the high-altitude regions of Ladakh, where Indian forces have faced off against adversaries in recent years.
The 2020 standoff with China along the Line of Actual Control underscored the need for enhanced mobility, prompting the Army to deploy both T-72s and T-90s to the region. The new 1,000-horsepower engines are expected to address these limitations, offering improved speed, endurance, and the ability to maneuver across diverse landscapes.
Beyond the technical upgrade, the agreement with Russia carries broader implications for India’s defense ecosystem. The transfer of technology to Armoured Vehicles Nigam Limited, a state-run entity under the Heavy Vehicle Factory umbrella, is a cornerstone of the deal.
This provision will enable India to integrate the engines locally and eventually produce them under license, reducing dependence on foreign suppliers over time. Officials from the Ministry of Defense have emphasized that this move strengthens the “Make in India” campaign, a flagship policy aimed at fostering self-reliance in critical sectors.
By establishing a domestic production line for these engines, India aims to streamline maintenance, cut costs, and build expertise that could extend to future armored vehicle projects.
India’s T-72 fleet has a storied history, reflecting the nation’s military engagements and strategic priorities. Introduced in the late 1970s, the tanks saw action with the Indian Peacekeeping Force in Sri Lanka during the late 1980s, navigating the jungles of Jaffna. More recently, they have been deployed in high-altitude environments like Ladakh, where their versatility was tested against both natural and human challenges.
A notable incident in 2024, when a T-72 sank during a river-crossing exercise in Ladakh due to flash floods, resulting in the loss of five soldiers, highlighted the risks of operating aging equipment in extreme conditions. The engine upgrade, while not directly addressing such incidents, signals an intent to modernize the fleet for greater resilience.
The deal also sheds light on India’s complex relationship with Russia, its oldest and most consistent defense supplier. Over 60% of India’s military hardware has Soviet or Russian origins, including the T-72 and its successor, the T-90, of which India has inducted over 1,300 units.
This latest contract comes less than a month after Prime Minister Narendra Modi’s visit to the United States, where discussions with President Donald Trump focused on expanding defense cooperation, including potential co-production of Javelin anti-tank missiles and Stryker infantry combat vehicles. The juxtaposition of these engagements underscores India’s multi-alignment strategy, balancing its historical ties with Moscow against a growing partnership with Washington.
Russia’s role in this transaction is facilitated through Rosoboronexport, the state-controlled arms exporter that has long served as a conduit for military trade with India. The 1,000-horsepower engines, likely variants of the V-92S2F model used in modern Russian tanks, represent a proven technology tailored for rugged conditions.
Their delivery in various assembly states—fully formed, semi-knocked-down, and completely knocked-down—offers flexibility, allowing India to prioritize immediate deployment while building long-term manufacturing capacity. This phased approach mirrors previous collaborations, such as the licensed production of T-90 tanks at Avadi, which has bolstered India’s armored capabilities over the past two decades.
While the T-72 remains a mainstay, India is also looking to the future. The Army has plans to phase out its aging Soviet-era tanks by 2030, replacing them with Future Ready Combat Vehicles designed for next-generation warfare. The engine upgrade serves as a bridge, extending the T-72’s operational life while the military transitions to more advanced platforms.
This dual-track approach reflects the practical constraints of modernizing a large force, balancing immediate needs with long-term ambitions. The enhanced T-72s will complement the T-90 fleet, which already benefits from more powerful engines and advanced electronics, maintaining a credible deterrent across India’s contested borders.
The operational impact of the new engines cannot be overstated. With 1,000 horsepower, the T-72s will gain a significant boost in acceleration and climbing ability, critical for rapid maneuvers in combat. In the plains and deserts, where armored warfare traditionally unfolds, this upgrade will enhance India’s ability to project power.
In high-altitude zones like Ladakh, where thinner air reduces engine efficiency, the added power could prove decisive in maintaining tactical superiority. The Ministry of Defense has stated that these improvements will elevate the Indian Army’s offensive capabilities, ensuring the T-72 remains a formidable asset against potential threats.
Economically, the deal aligns with India’s push for industrial growth. The Heavy Vehicle Factory in Avadi, already a hub for tank production, stands to benefit from the influx of technology and expertise. Local production of the engines could create jobs, foster innovation, and reduce reliance on imported spares, a perennial challenge for India’s military logistics.
The $248 million investment—equivalent to roughly 2,156 crore rupees—represents a sizable commitment, but one that officials argue will yield dividends through enhanced security and industrial capacity. Critics, however, may question the wisdom of investing in an aging platform when resources could accelerate the shift to newer systems.
Geopolitically, the agreement reinforces India’s nuanced stance in a polarized world. While the United States has urged India to reduce its reliance on Russian arms—evidenced by Trump’s promise of F-35 jets and increased military sales starting in 2025—New Delhi continues to prioritize operational continuity.
Russia’s willingness to share technology, a rarity among major arms exporters, remains a key factor in this enduring partnership. At the same time, India’s engagement with European and American suppliers signals a diversification strategy, ensuring it is not overly dependent on any single nation.
For the Indian Army, the immediate focus is on integration. Retrofitting thousands of T-72s with new engines will require meticulous planning, from training crews to recalibrating maintenance protocols. The phased delivery of engines in different assembly states offers a practical timeline, allowing units to upgrade incrementally without disrupting readiness.
The Army’s experience with T-90 production suggests it is well-equipped to handle this transition, though the scale of the T-72 fleet presents a unique challenge. Success here could set a precedent for future upgrades across India’s vast inventory of legacy systems.
The broader context of this deal reveals a nation at a crossroads. India’s military modernization is not just about hardware but about asserting its place in a shifting global order. The T-72 upgrade, while incremental, is a testament to its ability to adapt, leveraging old alliances to meet new challenges.
As the engines roll off Russian assembly lines and into Indian hands, they carry with them a story of resilience, pragmatism, and ambition—a story that will unfold on the battlefields and factory floors of a rising power.
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