Russia's Sukhoi holding and India's Hindustan Aeronautics Limited (HAL) agreed in early 2010 to jointly develop a fifth-generation fighter jet. India confirmed that it had finalized a draft contract at a meeting with Russia in early October.

"If all procedures are completed by the time of our president's visit [to India] in December, the contract will be ready for signing," Ivanov said.

The new aircraft will be based on Russia's T-50 prototype fifth-generation fighter, which has already made several test flights, and is expected to enter service with the Russian Air Force in 2015.

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