- - Wednesday, December 23, 2015

In a deal reminiscent of the Cold War, India has agreed to spend upwards of $6 billion to buy the vaunted S-400 anti-aircraft missile system from Russian arms manufacturers.

Indian Prime Minister Narendra Modi is in Moscow this week to cement this deal as well as other possible arms procurement. The S-400 will give India long-range, state-of-the-art missile defense against foreign aircraft and missiles. Russian-built frigates and nuclear-powered attack submarines could be on the table as well.

India is also keen to possibly spend another $1 billion to jointly produce a Russian-designed utility helicopter in India as Mr. Modi pushes to modernize the Indian armed forces and grow India’s domestic arms manufacturing base, according to Forbes. India feels the need to modernize to match perceived threats from its arch-enemy, Pakistan, and China, which is rapidly modernizing as well.

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With the price of crude oil close to decade lows, Russia is moving to ramp up arms sales to long-term customers like Iran and India. In addition to weapon sales, Russia and Iran announced that Russia will begin construction on two new nuclear power plants in Iran next week.

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