Russian president Vladimir Putin’s 24-hour stay in New Delhi beginning Thursday evening is going to be action-packed as the two sides are set to overlook the US objections and seal the $5.4 billion deal for S-400 air defence system, considered among the best in the world, filling a major gap in India’s military preparedness.

 Around 20 pacts will be signed in the presence of Putin and prime minister Narendra Modi, but the world’s attention is on the S-400 deal that is being finalised despite Donald Trump’s Countering America’s Adversaries Through Sanctions Act (CAATSA) that came into place to punish those dealing with Russia, Iran and North Korea.

The deal is a major boost to Indo-Russian ties as Moscow was uncomfortable with New Delhi’s growing proximity with the US. During the 2+2 talks with the US, India signed the Communication Compatibility and Security Agreement, COMCASA.

But India continues to rely heavily on the Russian imports, meeting 60 per cent of its requirement for military hardware from Russia and the relationship has remained steady despite Washington playing an increasingly important role. The signing of the missile deal is also a strong signaling to the US that New Delhi will not put all eggs in the same basket considering recent differences with Washington over trade tariffs and Trump’s tough stand on the issue.

The acquisition was desperately sought by the Indian Air Force which had been struggling with shortage of fighter jets and a crippling air defence system. IAF chief B S Dhanoa on Wednesday said procurement of S-400 and 36 Rafale fighter jets would be a “game-changer” in the region as they will give a big boost to India’s military might.

Russia has already sold S-400s to China creating a severe imbalance that would be corrected by supply of similar system to India. Putin and Modi will oversea the deal for the supply of five S-500 Triumf air defence systems which would be a generational shift for IAF’s defence capabilities. IAF had been using the older versions of Russian air defence systems that were waiting to be upgraded.

There is much more on the table other than S-400 deal. India is looking to build four Russian Krivak class stealth frigates in domestic shipyards apart from finalising contract for the purchase of 200 Kamov 226 T light utility helicopters and jointly produce AK 103 assault rifles. The Indian Army is also looking for a replacement of its old Russian T-72 tanks with new combat machines. Army chief general Bipin Rawat is already in Russia exploring the new possibilities.

The ties between the two countries extend far beyond the military relations. Russia is one of the biggest energy sources for India supplying nuclear power plants to LNG. There are several projects where leading Russian companies see a major opportunity to invest. President Putin and Prime Minister Modi will also attend a business summit on Friday where top CEOs from both sides will participate.