The T-72 tank, first introduced in India in the 1970s, is the mainstay of the Indian Army's fleet. It operates about 2,500 such tanks fitted with a 780 horsepower (HP) engine.
The new acquisition of 1,000 HP engines will replace engines of the existing fleet to "enhance the battlefield mobility and offensive capability of the Indian Army", the ministry said in a statement.
The deal includes transfer of technology from Rosoboronexport to Indian state-owned Armoured Vehicles Nigam Ltd for licensed production of the engines.
India is the world's largest arms importer and Russia has been its top defence supplier for decades, although Moscow's ability to provide systems was damaged by its war in Ukraine, which has made New Delhi look more westward for suppliers.
