In the context of the numerous accidents involving Russian-made MiG aircraft in India, it is interesting to examine how the military industrial complex, which had disintegrated after the collapse of the Soviet Union is being remodelled and refurbished and the challenges it faces. The upgradation and modernisation programme and the promotion of R and D appear to be leading to a re-emergence of Russia as a major producer and exporter of arms in the world lagging behind only the US.