India, Russia sign $10bn arms deal

Ilya Klebanov and Jaswant Singh signed the deal

India and Russia have signed a billion-dollar arms deal to develop military hardware over the coming decade.

The deal includes a plan to create an air defence system which would cover the whole of India's territory.

The two countries have also pledged to work together to develop high-tech fighter jets, submarines and ships under the agreement, estimated to be worth a total of $10bn.

The protocol follows talks between Russia's Deputy Prime Minister Ilya Klebanov and Indian Foreign Minister Jaswant Singh.

Missile defence

Mr Klebanov said the air defence project was a "large and very complicated project", but gave no further details.

Analysts say, however, that India would probably buy S-300 air defence systems and integrate them into its current surface-to-air bases in order to cover its whole territory.

India wants to defend itself from a possible attack from rival Pakistan

The aim would be to defend India from attack by neighbouring Pakistan's medium-range ballistic missiles

The deal develops Russia and India's decades-old military partnership.

"Our co-operation has turned toward the joint development and joint production of weapons, which is very important in the relations of the two countries," said Mr Klebanov.

They plan to develop a fifth generation fighter jet to be ready by 2007-2008 as well as a military transport aircraft, which Mr Klebanov said was "the plane of the 21st century".

The two countries will also work together to develop a new submarine.

The protocol is not binding but analysts say if all the commitments are fulfilled it will amount to $1bn of arms sales a year until 2010.