It is expected that the joint venture for the production of AK-203 will be formalized during the state visit of Russian President Vladimir Putin to India on December sixth.
The Indian Ministry of Defense has approved the creation of a joint venture for the licensed production of more than 600,000 Russian Kalashnikov AK-203 assault rifles. Now the transaction amount is estimated at about $ 590 million. Local production is scheduled to begin in the first quarter of 2022.
The AK-203 is an export variant from the AK-100 family of submachine guns chambered in 7.62 x 39. The Kalashnikov assault rifle boasts improved performance compared to the unreliable 5.56×45 mm rifle of the Indian NATO Small Arms System (INSAS), which currently serves as the basis of the Indian armed forces, writes National Interest.
The publication clarifies that New Delhi is a long-standing customer of Russian military equipment, cooperation dates back to Soviet times, but Moscow has historically struggled to break into the Indian small arms market. Insiders of the Russian defense industry familiar with the negotiations say that the joint production deal is characterized by “an unprecedented degree of localization and the speed of technology transfer.” According to forecasts, the company will reach the localization level of 70% within the first thirty-two months. All components of the machine must be manufactured in India within eighteen months.