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This has been in the works since 2019. It's not a new thing. And it was concluded before the war began.  
As much as I hate this deal - since it reeks of corruption (they railroaded all attempts at indigenization and still bought some 150k SIGs anyway which is a different round - which means two sets of optics and other accessories) it's not much of a military cooperation.
Reading between the lines here, this seems like a licencing deal more than anything else.
These are Indian AKs (initially with some Russian parts), built in India for the Indian army...
Russia is still profiting, but at least the arms aren't going to Russia itself... at least on paper...