India and Germany are on the verge of sealing a historic defence industrial pact that will see the construction of six next-generation conventional submarines for the Indian Navy.
The deal, estimated to be worth approximately $8 billion (₹70,000 crore), involves a strategic partnership between German defence major ThyssenKrupp Marine Systems (TKMS) and India’s state-owned Mazagon Dock Shipbuilders Limited (MDL).
This agreement marks the decisive conclusion of the long-pending Project-75 (India) tender, a critical initiative to bolster India's underwater combat capabilities.
Selection of the German Type 214NG
The Indian Navy has finalised the selection of the German Type 214NG (Next Generation) submarine, a 2,500-tonne vessel renowned for its advanced stealth and endurance.The German platform successfully outbid the S-80 Plus submarine offered by Spanish shipbuilder Navantia.
Key to this decision was the Navy’s stringent requirement for a sea-proven Air-Independent Propulsion (AIP) system.
The German design features a mature fuel-cell-based AIP system, which allows the submarine to remain submerged for weeks at a time—significantly longer than standard diesel-electric submarines, which must surface every few days to recharge batteries.
While the Spanish offer promised a bio-ethanol-based AIP, the technology was viewed as less operationally proven compared to the German system, which is already in service with multiple navies globally.
Deepening Industrial Cooperation
The foundation for this mega-deal was laid in June last year when TKMS and MDL signed a Memorandum of Understanding (MoU) to collaborate on the project.Under the proposed framework, TKMS will provide the engineering design, consultancy, and technical transfer, while MDL will serve as the construction partner.
The project places a heavy emphasis on indigenisation, aligning with the government's 'Make in India' initiative.
All six submarines will be built in India, with the first vessel expected to feature at least 45% indigenous content, scaling up to 60% for the final submarine.
This approach aims to not only deliver critical military hardware but also to develop a robust domestic submarine-building ecosystem that reduces reliance on foreign imports in the long term.
Diplomatic Push and Chancellor’s Visit
The timeline for the final contract has been accelerated by high-level diplomatic engagements.Sources indicate that the deal is likely to receive its final political clearance during the upcoming visit of German Chancellor Friedrich Merz.
Chancellor Merz is scheduled to visit India early next week, on January 12 and 13.
His visit is expected to provide the necessary political momentum to sign the inter-governmental agreement, signalling a significant deepening of the strategic partnership between New Delhi and Berlin.
This visit comes at a time when Germany is actively seeking to expand its defence footprint in the Indo-Pacific region.
Strategic Necessity
The finalisation of Project-75I is viewed as a critical necessity for the Indian Navy.India currently operates an ageing fleet of conventional submarines, many of which are nearing the end of their service lives.
In contrast, China has been rapidly expanding its naval presence in the Indian Ocean Region with a growing fleet of modern AIP-equipped and nuclear submarines.
Once inducted, the Type 214NG submarines will dramatically enhance India's ability to conduct long-range patrols and surveillance missions, maintaining a credible underwater deterrent in the region.
