
India’s Ministry of Defence has signed a $248 million agreement with Russia’s state-owned Rosoboronexport to procure advanced engines for its fleet of T-72 tanks. This strategic move aims to modernise one of the Indian Army’s key armour platforms by enhancing battlefield mobility and operational efficiency.
The deal, signed on March 7, 2025, will see the replacement of the current 780-horsepower engines with 1,000-horsepower units, significantly improving the performance of the T-72 fleet. Beyond the acquisition of hardware, the contract also includes a crucial transfer of technology to India’s Armoured Vehicles Nigam Limited (AVNL) in Avadi, Chennai. This aligns with the government’s ‘Make in India’ initiative, fostering domestic defence production and reducing long-term reliance on foreign suppliers.

Strengthening India’s Armored Capabilities
The T-72 has been a cornerstone of India’s armoured forces since its induction in the late 1970s. The fleet, consisting of approximately 2,400 tanks, has undergone multiple upgrades over the decades to maintain its combat effectiveness. However, the original engines have become increasingly inadequate, particularly in challenging terrains such as the deserts of Rajasthan and the high-altitude battlegrounds of Ladakh.
India’s 2020 standoff with China along the Line of Actual Control drove home the importance of enhanced mobility and power. The deployment of T-72s and T-90s in the region highlighted the necessity for a more powerful engine to navigate difficult landscapes effectively. The new engines promise to deliver greater speed, endurance, and operational flexibility.
T-72 Technology Transfer and Domestic Production
A key feature of the agreement is the transfer of technology to AVNL, enabling India to integrate the engines locally and eventually produce them under licence. This provision is expected to:
- Reduce Dependence on Imports: By establishing a local production line, India aims to cut costs and ensure self-sufficiency in maintaining its tank fleet.
- Enhance Maintenance and Logistics: Indigenous production will streamline supply chains, ensuring faster turnaround times for repairs and replacements.
- Bolster India’s Defence Industry: The deal strengthens India’s domestic defence sector, fostering technological expertise that could be leveraged for future armoured vehicle projects.
A Pragmatic Approach to T-72 Modernization
The T-72’s storied history reflects India’s evolving defence needs. The tanks have been deployed in various operations, including the Indian Peacekeeping Force’s mission in Sri Lanka during the 1980s and recent confrontations in Ladakh. However, operational challenges persist.
A tragic incident in 2024 highlighted the vulnerabilities of ageing equipment when a T-72 sank during a river-crossing exercise in Ladakh due to flash floods, resulting in the loss of five soldiers.
While the engine upgrade will not directly address all such risks, it signifies India’s commitment to maintaining a battle-ready force.
Balancing Strategic Partnerships
India’s ongoing defence engagements with Russia come at a time of shifting geopolitical dynamics. While the United States and its allies have imposed sanctions on Russia, New Delhi remains steadfast in maintaining its historical defence ties with Moscow.
This latest deal follows Prime Minister Narendra Modi’s recent visit to Washington, where discussions with President Trump focused on expanding US-India defence cooperation, including the possible joint production of Javelin anti-tank missiles and Stryker infantry combat vehicles.
Despite Western pressure to reduce its reliance on Russian arms, India’s approach remains pragmatic. Russia’s willingness to transfer technology—a rare offering among major arms exporters—continues to be a significant factor in India’s procurement decisions.
Simultaneously, India is diversifying its defence partnerships, strengthening collaborations with the US, France, and Israel to balance its strategic interests.
Technical and Economic Implications
The new 1,000-horsepower engines are expected to be variants of the V-92S2F model, which powers modern Russian tanks. The delivery will take place in different assembly states—fully assembled, semi-knocked-down, and completely knocked-down—allowing India to prioritise immediate deployment while gradually expanding its domestic manufacturing capabilities.
This phased approach mirrors previous collaborations, such as the licensed production of T90 tanks at Avadi, which has significantly bolstered India’s armoured capabilities over the past two decades.
The economic impact of this deal extends beyond the immediate procurement cost of $248 million (approximately 2,156 crore rupees). It presents an opportunity for job creation, technology enhancement, and the strengthening of India’s industrial base.

Looking to the Future
This deal extends the T-72’s service life while India readies for next-generation armoured warfare. The army plans to retire Soviet-era tanks by 2030. They will be replaced with Future Ready Combat Vehicles (FRCVs) for modern battlefields. The T-72 upgrade acts as a bridge to keep forces operational until new platforms arrive.
Upgraded T-72s will work alongside the T-90 fleet. The T-90s already feature stronger engines and advanced electronics. Together, they maintain a credible deterrent across contested borders. New engines will provide T72s with better acceleration and manoeuvrability. These improvements are essential for fast-paced combat situations.
Conclusion
India’s move to buy upgraded T-72 engines shows its commitment to a strong military amid global security challenges. The deal boosts the army’s armoured capabilities and strengthens India’s balanced defence partnerships.
These new engines represent more than raw power. They reflect a calculated plan to maintain readiness and advance technology. They also reinforce India’s position as an emerging global power. Modernised T-72s with upgraded engines will remain vital for border defence. They will serve alongside India’s transition to next-generation combat platforms.