India is set to lease a nuclear-powered attack submarine from Russia for about $2 billion, according to people familiar with the discussions. The deal, which had been stuck for years over pricing issues, has now been cleared just as President Vladimir Putin arrives in New Delhi this week.

Officials said Indian teams had visited a Russian shipyard in November, and the submarine is expected to arrive in around two years. However, the project’s complexity means the timeline could stretch further.

Putin’s visit on Thursday will be his first trip to India since Russia launched its full-scale invasion of Ukraine. He is expected to meet Prime Minister Narendra Modi to strengthen defence and energy ties.

The submarine deal comes at a time when Modi has been strengthening relations with both Russia and China, even as India faces higher tariffs under US President Donald Trump’s trade policy.

India is currently negotiating with the US to roll back those 50% tariffs, imposed as part of Trump’s effort to pressure India into reducing Russian oil imports.

Ahead of Putin’s arrival, India’s Navy Chief Admiral Dinesh K. Tripathi said the commissioning of the attack submarine would be “expected soon,” without giving more details. He added that the vessel would be bigger than the two nuclear-powered submarines already in India’s fleet.

Government ministries in India and Russia have not commented on the deal yet.

According to the Nuclear Threat Initiative (NTI), India has developed nuclear-capable submarine-launched ballistic missiles (SLBMs), which give the country a full nuclear “triad”, the ability to launch weapons from land, air, and sea.

Nuclear-powered submarines are far superior to diesel-electric ones because they can:

stay underwater much longer, travel farther, and operate more quietly, making them hard to track.

India currently operates 17 diesel-powered submarines but is expanding its nuclear fleet.

Under the lease terms, the Russian submarine cannot be used in combat. It will help India:

train sailors, sharpen nuclear submarine operations, and support India’s own submarine-building programme.

The submarine will stay with the Indian Navy for 10 years, similar to the previous Russian vessel that returned in 2021. The contract includes maintenance support.

As the Indian Ocean gains strategic importance, more countries are looking at nuclear-powered submarines. Australia is working with the US and UK under the AUKUS partnership to build such boats.

Only a few nations, the US, UK, France, China, and Russia, currently operate nuclear-powered submarines. South Korea is also working with the US on similar plans.

India continues to keep close ties with Moscow while increasing defence purchases from the US and Europe. Still, Modi’s decision to rely on Russia for nuclear submarines shows New Delhi’s comfort in working with Moscow on high-end military projects.

Trump has criticised India for its defence ties with Russia and oil imports.

“They have bought vast majority of their military equipment from Russia and are Russia’s largest buyer of energy with China,” he said in July.

The US has since introduced a 25% secondary tariff on Indian goods, pushing India to diversify trade options.

India’s third ballistic missile submarine is expected to join the Navy next year. The country is also building two indigenous nuclear-powered attack submarines, according to Bloomberg News.

The new Russian-leased submarine will help India speed up training and operations as it grows its underwater nuclear force.