India–Germany ₹72,000 Crore Submarine Deal: Redefining India’s Undersea Power and Strategic Autonomy

India is poised to conclude one of its most consequential defence agreements in recent decades with Germany, a ₹72,000 crore submarine deal under Project-75I that is set to significantly transform the Indian Navy’s undersea warfare capabilities. Expected to be formalised during German Chancellor Friedrich Merz’s visit to India in January 2026, the agreement marks a decisive step in India’s long-term maritime strategy, combining advanced technology, indigenous manufacturing, and strategic deterrence.

India and Germany is set to clear Rs 72,000 crore deal to build 6 submarines in India (Image Source: Financial Times) | OpIndia

Project-75I and the Need for Modern Undersea Capabilities

Project-75I was conceived to address a growing capability gap in India’s conventional submarine fleet. While India operates a mix of Kilo-class, Shishumar-class, and Scorpène-class submarines, many of these platforms are ageing and lack modern endurance and stealth features essential for contemporary naval warfare. The changing security environment in the Indian Ocean Region, marked by increasing Chinese naval deployments and Pakistan’s submarine modernisation with Chinese assistance, has made undersea dominance a strategic necessity rather than a choice.

Against this backdrop, Project-75I aims to induct six next-generation conventional submarines equipped with advanced propulsion, sensors, and weapons, capable of sustained submerged operations in high-threat environments.

Why the German Type-214NG Was Chosen

After an extensive and competitive evaluation process, India selected the German Type-214 Next Generation (214NG) submarine over rival designs, including Spain’s S-80 Plus. The decision was driven primarily by the maturity and proven reliability of Germany’s fuel-cell-based Air Independent Propulsion (AIP) system. AIP technology allows submarines to remain submerged for weeks without surfacing, dramatically reducing detection risks and enhancing stealth.

The Type-214NG also offers superior acoustic quieting, advanced combat management systems, and a lower lifecycle risk compared to less-tested platforms. For the Indian Navy, which prioritises survivability and covert endurance in contested waters, these attributes were decisive.

Air Independent Propulsion and the Future of Naval Warfare

Air Independent Propulsion represents a fundamental shift in conventional submarine operations. Traditional diesel-electric submarines must periodically surface or snorkel to recharge batteries, exposing them to enemy sensors. AIP eliminates this vulnerability by enabling extended underwater endurance, allowing submarines to operate silently for prolonged periods.

In an era where maritime surveillance, anti-submarine warfare, and satellite tracking have advanced rapidly, the ability to remain hidden underwater is central to deterrence. The inclusion of AIP-equipped submarines under Project-75I significantly enhances India’s ability to conduct covert patrols, intelligence gathering, and sea-denial missions across the Indian Ocean.

Make in India and Atmanirbhar Bharat at the Core

A defining feature of the India–Germany submarine deal is its strong emphasis on domestic manufacturing. All six submarines will be constructed at Mazagon Dock Shipbuilders Limited (MDL) in Mumbai, with ThyssenKrupp Marine Systems (TKMS) acting as the technology and design partner. Indigenous content is expected to begin at approximately 45 percent and progressively rise to around 60 percent by the final submarine.

This approach aligns closely with India’s Atmanirbhar Bharat vision, ensuring that the deal does not remain a mere procurement exercise but becomes a vehicle for long-term capability building. The transfer of technology, workforce training, and development of a domestic supply chain are expected to strengthen India’s submarine-building ecosystem and reduce future dependence on foreign suppliers.

Strategic Significance in the Indo-Pacific

The timing of the deal carries substantial geopolitical weight. China’s expanding submarine footprint in the Indian Ocean, coupled with Pakistan’s acquisition of advanced Chinese submarines, has altered the regional naval balance. Project-75I directly addresses these challenges by restoring India’s conventional undersea edge.

At the same time, the agreement reflects Germany’s growing strategic engagement in the Indo-Pacific and India’s broader effort to diversify defence partnerships beyond traditional suppliers. The collaboration underscores a shared interest in maintaining stability, freedom of navigation, and deterrence in a region increasingly shaped by great-power competition.

Challenges Ahead

Despite its strategic promise, the project is not without challenges. The high cost of advanced submarine platforms, the complexity of technology transfer, and the need to adhere to strict delivery timelines will test both industrial capacity and project management. Mazagon Dock’s ability to balance multiple naval construction programmes simultaneously will be critical to avoiding delays.

Nevertheless, these challenges are not unexpected in projects of this scale and sophistication, and they do not diminish the long-term value of the programme.

The MGMM Outlook

The India–Germany ₹72,000 crore submarine agreement under Project-75I reflects a clear recognition that undersea capability is now central to India’s maritime security. With the Indian Ocean witnessing increased Chinese naval activity and Pakistan rapidly modernising its submarine fleet with Chinese support, strengthening conventional submarine strength is no longer optional. The selection of Germany’s Type-214 Next Generation submarines, with proven Air Independent Propulsion technology, addresses long-standing gaps in endurance, stealth, and survivability. These platforms significantly enhance India’s ability to conduct sustained underwater patrols, intelligence missions, and sea-denial operations in contested waters, restoring a credible conventional deterrent in the region.

Equally significant is the emphasis on indigenous construction and technology absorption. Building all six submarines at Mazagon Dock with rising domestic content transforms the deal into a long-term capability-building exercise rather than a one-time purchase. The transfer of advanced submarine design expertise, production skills, and supply-chain development strengthens India’s defence industrial base and aligns with the broader objective of strategic autonomy. At a geopolitical level, the partnership signals India’s intent to diversify defence cooperation while reinforcing a shared commitment with Germany to stability and balance in the Indo-Pacific.

(Sources: OpIndia, Times of India, Economic Times)