What was once described as a “free gift” from Russia to India ultimately became one of the most expensive and controversial defence acquisitions in Indian naval history. The aircraft carrier Admiral Gorshkov, later rechristened INS Vikramaditya, cost the Indian Navy nearly $3 billion, triggering debates on defence preparedness, contract management, and strategic dependence.
A ‘Free’ Carrier with Hidden Costs
In 2004, India signed a landmark agreement with Russia to acquire the decommissioned Soviet-era aircraft carrier Admiral Gorshkov. Under the deal, Russia agreed to hand over the vessel free of cost, while India would pay around $974 million for its refurbishment and modernization, along with additional expenses for aircraft and support systems.
At the time, the deal was seen as a strategic bargain. India needed an aircraft carrier urgently to maintain its blue-water navy ambitions, and Russia was keen to preserve its defence partnership with New Delhi after the collapse of the Soviet Union.
Delays, Disputes and Escalating Costs
Soon after refurbishment work began at the Sevmash shipyard in Russia, problems surfaced. Russian officials cited the poor condition of the ship, claiming that extensive repairs and redesigns were required. Costs spiraled dramatically, and timelines slipped repeatedly.
By 2009, Russia demanded an additional $1.2 billion, warning that the project could be abandoned if India refused. The standoff led to intense negotiations at the highest political and military levels. Eventually, India agreed to a revised deal, pushing the total cost to nearly $2.35 billion, excluding aircraft and operational expenses.
When all associated costs, including MiG-29K fighter jets, training, spares, and long-term maintenance are accounted for, the overall expenditure is estimated to have crossed $3 billion.
A Strategic Necessity Despite the Price
INS Vikramaditya was finally commissioned into the Indian Navy in 2013, nearly a decade later than originally planned. Despite the controversy, naval officials maintain that the carrier filled a critical capability gap, especially as India awaited the commissioning of its indigenous aircraft carrier programme.
The carrier has since played a key role in enhancing India’s maritime reach in the Indian Ocean Region and has been central to major naval exercises and deployments.
Lessons for India’s Defence Procurement
The Admiral Gorshkov episode is often cited as a cautionary tale in India’s defence procurement history. It exposed weaknesses in contract enforcement, cost estimation, and risk assessment when dealing with legacy platforms.
The experience also strengthened India’s resolve to pursue indigenous defence manufacturing. Programmes such as INS Vikrant reflect lessons learned from the Gorshkov saga, emphasizing self-reliance, tighter oversight, and reduced dependence on foreign suppliers.
A ‘Free Gift’ That Changed Policy Thinking
While the Admiral Gorshkov may have arrived as a “free gift” on paper, its true cost reshaped India’s approach to military acquisitions. The story remains a stark reminder that in defence deals, there is rarely anything truly free—and that strategic necessity often comes at a steep price.
