Indian Prime Minister Narendra Modi (R-Central) reviews the guards of honor of Russia on the Vnukovo airport in Moscow, Russia, on Dec 23, 2015. [Photo/Xinhua]

Now Russian President Vladimir Putin is banking on India's drive to manufacture at home to regain market share.

"The objective is that whatever we do with Russia, that will have a 'Make-in-India' component," said Amitabh Kant, the top Indian bureaucrat leading the push to turn India into a global manufacturing base.

Under an inter-government agreement to be signed during Modi's trip, Moscow will set up a production line for the light helicopters that will supply the Indian military but also eventually Russia, the Russian official said.

India's state-run Hindustan Aeronautics and Anil Ambani's Reliance Defence are in the running as local partners for the deal for the 200 twin-engined helicopters, estimated at $1 billion, to replace India's ageing fleet of Cheetah and Chetak helicopters.

Indian Oil Corp and Oil India, both state-owned, are in talks with Russia's Rosneft to buy up to a 29 percent stake in a Siberian oil project, two sources said on Friday.