Russia and India announce step-change helicopter production

Russian Helicopters has announced an agreement to establish a joint venture (JV) in India with Elcom Systems to manufacture Russian-designed rotary-wing aircraft under the Ka and Ma brands; a deal that marks an abrupt shift from conventional Russo-Indian defence and aerospace co-operation.

Elcom – a subsidiary of the SUN Group – is a privately owned venture. Russia is India's most significant military industrial partner, although past large-scale collaboration has almost always been on a government-to-government level between state-owned organisations.

The agreement between Russian Helicopters (a subsidiary of Russian state holding company Oboronprom) and Elcom was announced on 26 December. It coincided with a visit to India by Russian President Vladimir Putin, and the announcement of a series of military contracts valued at around USD3 billion.

The JV will almost certainly be related to offset obligations that will be attached to the Indian procurement of 71 Mi-17B Hip helicopters, valued at USD1.3 billion. In addition to the Mi helicopters, India agreed to procure 42 additional SU-30MKI fighter aircraft in kit form for USD1.6 billion.

The JV between Elcom and Russian Helicopters will produce helicopter components in addition to carrying out final assembly and testing.