Under the agreement, signed between visiting Russian Deputy Prime Minister Ilya Klebanov and Indian Defence Minister George Fernades, India will manufacture some of the tanks under licence and buy the rest directly.
The value of the deal is not known.
India was a faithful customer of the Soviet arms industry during the Cold War and the two countries patron-client defence relationship continued in the 1990s even though India has been scouting around for other suppliers.
The majority of India's 3,500-odd Main Battle Tanks and the bulk of its combat planes are Russian-made.
Last year, India bought 50 high-tech Sukhoi-30 multi-role fighters from Russia for an estimated $1.5 billion with licence to manufacture around 150 more.
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