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India Finalizes $10 Billion German Submarine Deal, Marking Major Leap in Naval Power and ‘Make in India’ Defence Push

India Finalizes $10 Billion German Submarine Deal, Marking Major Leap in Naval Power and ‘Make in India’ Defence Push

Indian Navy officer and German official shake hands in front of a submarine during India-Germany Project-75I defence partnership ceremony.
An Indian Navy officer and a German official shake hands at a shipyard as India and Germany strengthen defence ties under the $10 billion Project-75I submarine program.


By Defence Worlds Desk

In a landmark development for India’s maritime security and indigenous defence manufacturing, New Delhi has moved closer to finalizing a nearly $10 billion submarine deal with Germany under the Indian Navy’s ambitious Project-75(India) program. The agreement, expected to be one of the largest defence contracts in India’s history, aims to build six next-generation conventional submarines equipped with advanced stealth and propulsion systems.

The deal reflects India’s growing focus on strengthening its underwater warfare capabilities, reducing import dependence, and positioning itself as a major defence manufacturing hub in the Indo-Pacific region.

A Strategic Boost to India’s Naval Power

The proposed agreement is centered on cooperation between India’s Mazagon Dock Shipbuilders Limited (MDL) and Germany’s Thyssenkrupp Marine Systems (TKMS). Under the Strategic Partnership model, the submarines will be constructed in India with significant technology transfer.

Once completed, these submarines will significantly enhance the Indian Navy’s operational reach in the Indian Ocean Region (IOR), where China’s expanding naval presence and regional security challenges continue to reshape strategic dynamics.

Defence analysts describe the deal as a “game changer” for India’s underwater fleet, which currently faces capacity gaps due to the retirement of aging submarines.

Project-75I: Backbone of India’s Submarine Modernization

The agreement falls under Project-75I (India), a flagship submarine modernization program designed to complement the earlier Project-75, under which Scorpène-class submarines were built in partnership with France.

Project-75I focuses on:

  • Advanced stealth features
  • Modern combat management systems
  • Long-range strike capability
  • Extended underwater endurance
  • Indigenous manufacturing

The German proposal reportedly meets all technical and operational requirements set by the Indian Navy, including proven platform design and scalable technology transfer.

Advanced Air-Independent Propulsion (AIP) Technology

One of the most significant features of the upcoming submarines is the inclusion of Air-Independent Propulsion (AIP) technology.

AIP systems allow submarines to remain submerged for weeks without surfacing, greatly reducing detection risks and improving combat effectiveness.

Key advantages of AIP-equipped submarines include:

  • Enhanced stealth operations
  • Longer underwater patrols
  • Reduced vulnerability to enemy surveillance
  • Greater flexibility in contested waters

Germany’s fuel-cell-based AIP system is considered among the most reliable in the world, making it a strong fit for India’s long-term naval requirements.

Strengthening ‘Make in India’ in Defence

A major highlight of the deal is its alignment with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

Instead of importing fully-built submarines, India will manufacture them domestically, supported by German expertise.

This approach is expected to:

  • Create thousands of skilled jobs
  • Strengthen domestic supply chains
  • Upgrade shipbuilding infrastructure
  • Enhance long-term maintenance capabilities
  • Build export potential

Industry experts believe the submarine program could serve as a foundation for India’s future defence exports in the Asia-Pacific, Africa, and Middle East.

Technology Transfer and Industrial Cooperation

The inter-governmental framework between India and Germany includes provisions for:

  • Comprehensive technology transfer
  • Training of Indian engineers and naval personnel
  • Joint research and development
  • Long-term technical support
  • Intellectual property safeguards

This structured cooperation ensures that Indian shipyards gradually gain full capability to design, build, and upgrade complex underwater platforms.

Over time, India aims to reduce dependence on foreign original equipment manufacturers (OEMs) and develop its own submarine design ecosystem.

Delivery Timeline and Implementation

According to defence sources, the first submarine is expected to be commissioned around seven years after contract signing, followed by phased deliveries.

A tentative schedule includes:

  • Contract signing and final design: Year 1
  • Infrastructure and skill development: Years 1–3
  • First submarine construction: Years 3–7
  • Serial production: Years 6–12

Such timelines reflect the complexity of submarine construction and the importance of quality assurance in underwater warfare platforms.

Addressing India’s Submarine Fleet Shortfall

The Indian Navy currently operates a limited number of conventional and nuclear submarines, many of which are approaching the end of their service life.

With increasing regional competition, naval planners have emphasized the need for:

  • At least 18–24 conventional submarines
  • A balanced mix of nuclear and diesel-electric platforms
  • Integrated surveillance and strike capability

The German submarine deal is expected to fill a critical gap while India continues to expand its indigenous nuclear submarine program.

Geopolitical and Regional Implications

The agreement carries significant geopolitical weight.

In recent years, China has rapidly expanded its submarine fleet and naval bases across the Indo-Pacific. Pakistan has also strengthened its underwater capabilities through Chinese support.

By partnering with Germany, India diversifies its defence partnerships beyond traditional suppliers and reinforces its strategic autonomy.

The deal also signals Europe’s growing engagement in Indo-Pacific security, aligning with India’s vision of a free, open, and rules-based maritime order.

Why Germany Emerged as the Preferred Partner

Germany’s success in securing the deal is attributed to several factors:

  • Proven submarine design experience
  • Reliable AIP technology
  • Willingness for deep technology transfer
  • Long-term industrial cooperation model
  • Competitive life-cycle costs

TKMS has previously supplied submarines to several leading navies, building a reputation for quality and operational reliability.

Indian defence planners reportedly favored Germany’s offer over competing proposals due to its balanced combination of performance, cost, and localization.

Economic and Technological Impact

Beyond defence, the submarine program is expected to generate substantial economic and technological spillovers.

Key benefits include:

  • Upgradation of Indian shipyards
  • Development of specialized metallurgy
  • Growth in marine electronics industry
  • Strengthening of precision engineering
  • Expansion of defence MSME ecosystem

These capabilities are crucial for India’s broader ambition to become a global manufacturing and technology hub.

Political and Strategic Consensus

The deal enjoys broad political and institutional support due to its long-term strategic relevance.

Successive governments have emphasized naval modernization as central to national security, given India’s dependence on sea lanes for trade and energy imports.

Defence officials stress that underwater dominance is essential for deterrence, intelligence gathering, and crisis response.

Future Outlook: Building a Blue-Water Navy

With the German submarine deal, India takes another major step toward building a credible blue-water navy capable of operating across the Indo-Pacific.

Combined with aircraft carriers, nuclear submarines, maritime patrol aircraft, and surveillance networks, the new fleet will strengthen India’s multi-domain maritime posture.

Looking ahead, policymakers aim to integrate these submarines into a network-centric warfare environment, ensuring seamless coordination with surface ships and air assets.

Conclusion

India’s $10 billion submarine partnership with Germany represents far more than a defence purchase. It is a strategic investment in national security, industrial self-reliance, and technological advancement.

By combining global expertise with domestic manufacturing, New Delhi is reshaping its defence ecosystem and reinforcing its role as a leading maritime power.

As Project-75I moves toward execution, the program is expected to redefine India’s underwater warfare capabilities for decades to come, strengthening deterrence, safeguarding sea lanes, and supporting regional stability.

For India, the deal is not just about acquiring submarines—it is about securing its maritime future in an increasingly contested Indo-Pacific landscape.

 

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