Russia will pitch its new combat jet for a $9 billion (£4.5 billion) Indian defence contract, adding to fierce competition among European companies for one of the largest orders by any air force.

Sergei Ivanov, the Defence Minister, said that Russia would submit the MiG-35, an advanced version of the MiG-29, to the tender for 126 light fighter aircraft as the Indian Air Force seeks to upgrade its ageing fleet of Russian-made MiG-21s and British Jaguars.

India’s military, the world’s third-largest with 1.3 million active personnel, plans to buy new fighters and trainer jets, submarines, radar equipment and weaponry as it upgrades its defence capabilities after decades of neglect.

Mr Ivanov, speaking in Bangalore before a two-day visit to India by President Putin, said: “These aircraft [MIG-35s] are equipped with superb engines and can easily be manufactured and maintained in India.”

The minister’s declaration puts Russia up against bids expected from Lockheed Martin, of the United States, Dassault Aviation, of France, Gripen-SAAB, of Sweden, Boeing, of the US, and the Eurofighter consortium, in which BAE Systems has a 33 per cent stake. It also sets the tone for Mr Putin’s visit tomorrow, which is expected to focus on maintaining Russia’s position as the largest supplier of arms to India and countering the growing influence of America, India’s new ally after a landmark nuclear treaty.

Russia is the source of more than 70 per cent of India’s military hardware, having sold the country arms worth about $10 billion over the past five years, but delivery problems and currency exchange complications have forced India to buy from other nations, including Britain, the US, France and Israel. India and Russia have traditionally close military and diplomatic ties, but these have been threatened since the US agreed last year to allow India access to civilian nuclear technology after decades of isolation.

Mr Putin, who is to be guest of honour at India’s annual Republic Day parade on Friday, will bring a delegation of businessmen and ministers in an effort to win contracts in India’s burgeoning energy sector. He told the Press Trust of India: “We intend to help India directly in construction of atomic energy facilities for peaceful use.”

M. V. Rajasekharan, the Indian Planning Minister, said that Mr Putin’s visit would “take bilateral relations between the two time-tested friends to new heights”.

Mr Ivanov said that “very substantial” agreements would be signed during Mr Putin’s trip. These are thought to include a co-operation agreement for making multipurpose transport aircraft and collaboration in production of the fifth-generation fighter being developed by Sukhoi, the Russian manufacturer.