The Kamov Ka-226T, which Russia offered to assemble in India, is a light multi-role helicopter which is used for search-and-rescue operations.
The issue was discussed during the summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.
Russia has also offered civilian aircraft Sukhoi Superjet-100 and MS-21 aircraft to India.
According to Russian Deputy Prime Minister Dmitry Rogozin, almost 400 Kamov helicopters a year will be assembled in India. He said Russia may consider producing Mi-17 transport helicopter in India as well.
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The Prime Minister said Russia has been India's foremost defence partner through decades and it will remain so.
"Even as India's options have increased today, Russia will remain our most important defence partner. We have conducted joint exercises across all three wings of the Armed Forces in the last six months," he said.
"Almost 400 Kamov helicopters a year will be turned out," Interfax news agency quoted Rogozin as saying.