State-owned defense companies in Russia and India have signed an agreement to jointly develop an upgraded version of the Pantsir air defense missile-gun system (ADMG) for the South Asian nation’s armed forces.

The agreement was signed in Goa last week by Hyderabad-based Bharat Dynamics Limited (BDL), a company under Indian Ministry of Defense that produces guided missile systems, and Russia’s Rosoboronexport, part of the Rostec defense corporation, according to a statement shared on X.

The Pantsir was among the self-propelled air defense systems being considered for an Indian Army contract that has yet to be finalized, the Hindustan Times noted. It said the agreement was aimed at jointly developing new variants of the Pantsir system better suited to India’s needs.

It follows a $5.4-billion deal signed by India and Russia in October 2018 for five batteries of the S-400 air-defense system. Russia has so far provided three of these systems, and deliveries of the remaining two will be completed next year, Marshal Amar Preet Singh stated in October. Media reports also suggested that BDL could localize the manufacturing of Pantsir systems in line with the “Make in India” initiative of Prime Minister Narendra Modi’s government.

Designed for both standalone and integrated operations with other air-defense systems, the Pantsir, developed by the Tula Instrument Design Bureau in the mid-1990s, provides extensive coverage against large-scale aerial attacks. It can neutralize aerial threats flying at speeds of up to 1,000 miles per second, including drones and helicopters, and functions effectively even in electronic warfare conditions.

Pantsir systems have “performed exceptionally well” in the Ukraine conflict, former Russian defense minister Sergey Shoigu stated earlier this year, adding that deliveries of these would be “expanded nearly twofold” in 2024. Saudi Arabia and UAE are some of the countries that have integrated Pantsir systems into their defense frameworks.

Cooperation in the defense sector between Moscow and New Delhi dates back to Soviet era, with Russia continuing to be India’s major supplier of weapons, according to the Stockholm International Peace Research Institute. Between 2019 to 2023, Russia accounted for 34% of India’s defense imports.