Co-operation in the field of defence constitutes one of the most important features of Indo-Russian bilateral ties. However, the relationship is undergoing significant changes in the new context of market reforms and globalisation, as well diversification of acquisitions by India. Owing to the past legacy and ongoing projects, Russia will remain, at least for the foreseeable future, a major defence partner of India. However, in view of the increased competition for the Indian defence market and the technological demands of India’s defence sector, joint development and production of new weapon systems could become crucial for sustaining Indo-Russian co-operation in the coming years.