The country's first locally designed and developed combat helicopter will be produced at the country's largest helicopter factory, opened by Prime Minister Narendra Modi in February 2023.
"This decision marks a major boost to India's combat capabilities and self-reliance," defence minister Rajnath Singh said on X.
"This is indeed a proud moment for India's Make in India journey."
His ministry said it had signed contracts with state-owned Hindustan Aeronautics Limited.
"The supply of these helicopters shall commence from the third year and will be spread over the next five years", the ministry said, without giving specific dates.
The new aircraft will "enhance the combat capability of armed forces at high altitudes," it added.
The country's recent push to modernise and locally produce defence equipment was spurred by its deadliest clashes in decades with China along their long and disputed border in 2020.
India has also fought multiple wars with its other nuclear-armed neighbour, Pakistan, and has tens of thousands of troops deployed along both of those tense frontiers.
The new helicopters will be deployed around the country's tough high-altitude Himalayan frontiers.
In recent years, India has introduced its first locally made aircraft carrier.
It also become only one of six countries with nuclear strike capabilities on land, sea and air after it tested a ballistic missile from its first homegrown nuclear-powered submarine.
Modi has pledged to "gradually reduce India's dependence on foreign countries for its defence needs", but the country still remains one of the biggest hardware importers in the world.
New Delhi has tried to cut its dependence on Russia, its traditional ally and primary source of key military platforms for decades.
It has procured key hardware worth billions of dollars from countries like Israel, France and the United States in recent years.
Modi has also eased investment and co-production rules to spur local defence manufacturing.
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