WASHINGTON (Diya TV) — India has finalized a $248 million deal with Russia’s state arms exporter Rosoboronexport to modernize its fleet of T-72 main battle tanks. The contract involves the supply of advanced 1,000-horsepower engines, boosting the mobility and fighting power of about 2,500 in-service T-72 tanks. The project also includes technology transfer to India’s state-owned Armoured Vehicles Nigam Ltd, by the country’s “Make in India” defense production strategy.

The T-72 tanks, which were introduced during the 1970s, have been the backbone of India’s armored brigades. The new engines will be replacing the current 780-horsepower engines, dramatically enhancing operational capability on varied terrains, including high-altitude areas.

At the same time, US Commerce Secretary Howard Lutnick has called for India to bring down its highest-in-the-world 12% average tariff rate to enable a more dynamic bilateral trade relationship. Speaking to India Today, Lutnick stated that reducing tariffs and diversifying defense purchases outside the usual Russian vendors could unlock the way toward a full-scale trade agreement between the two countries.

Lutnick underscored the American administration’s willingness to provide India with sophisticated military equipment, such as F-35 fighter planes. The plan is intended to persuade India to purchase American defense goods and lower its long-time dependence on Russian military hardware.

These come as the U.S. administration is set to impose retaliatory tariffs in April on nations with high import duties on American products. India’s high tariffs have been cited as a hindrance to deepening economic relations, with demands for policy reforms to create a more balanced trade environment.

Indian Trade Minister Piyush Goyal is in the United States for a week-long trip, holding discussions to re-orient India’s trade and defense procurement policies. The talks are likely to tackle the issues flagged by Secretary Lutnick and identify ways of deepening the U.S.-India strategic relationship.

As India continues upgrading the T-72 tanks, the delicate balance between preserving traditional defense alliances and opening up to new partners continues to be a point of focus in its strategic thought process. The results of current negotiations with the United States can potentially shape India’s future defense procurement choices and its position on the international trade front.