India and Russia on Thursday have finalized a major deal for manufacturing AK-47 203 rifles in India.

According to Russia's Sputnik news agency, the deal took place during Defence Minister Rajnath Singh's ongoing Russia visit. There was however no official confirmation from the Indian government on the finalization of the deal.

The AK-47 203 will replace the Indian Small Arms System (INSAS) 5.56×45 mm assault rifle. It is the latest and most advanced version of the AK-47 rifle.

Russian state agency for military exploits said that the rifles will be manufactured in India as part of the joint venture Indo-Russia Rifles Pvt Ltd (IRRPL).

The 7.62×39 mm rifle will be produced at the Korwa Ordnance Factory in Uttar Pradesh, which was inaugurated by Prime Minister Modi in 2019.