India-Germany $8 Billion Submarine Deal Moves Closer to Signing
India and Germany are moving closer to finalising a major defence partnership that could see six advanced conventional submarines being built in India under Project 75(I). The proposed agreement, estimated at around $8 billion, has already been cleared on the German side, with Germany now awaiting the completion of India's internal approval process.
German Ambassador to India Jasper Wieck said on September 23 that the documents had been finalised and agreed upon by Germany, describing the proposed arrangement as a partnership focused on production and technology transfer in India rather than simply the sale of German submarines.
Six Next-Generation Submarines Under Project 75(I)
The proposed programme involves German defence company Thyssenkrupp Marine Systems (TKMS) partnering with Mazagon Dock Shipbuilders Limited (MDL) to construct six submarines in India. The vessels are expected to be equipped with Air Independent Propulsion (AIP) technology, which enables conventional submarines to remain submerged for longer periods without relying solely on their batteries.
Project 75(I) was originally conceived as a major effort to strengthen India's conventional submarine capabilities. The Ministry of Defence's original programme envisaged six AIP-equipped submarines with advanced weapons, sensors, torpedoes, missiles and countermeasure systems, alongside significant technology transfer and domestic manufacturing.
Technology Transfer at the Core
One of the most significant aspects of the proposed agreement is its emphasis on technology transfer and domestic production. Instead of importing completed submarines, the partnership is intended to establish production capabilities in India, allowing Indian industry to gain experience in advanced submarine construction and associated technologies.
The arrangement is also expected to involve a wider network of Indian companies and suppliers. This could contribute to the development of specialised manufacturing capabilities, skilled manpower and supporting supply chains around the country's naval shipbuilding industry.
The broader objective of Project 75(I) has been to create a stronger domestic ecosystem capable of supporting submarine construction, maintenance and technological development over the long term.
Strengthening India's Underwater Capabilities
The proposed submarines would add to India's conventional underwater fleet and introduce advanced capabilities through AIP technology. Longer submerged endurance can provide conventional submarines with greater operational flexibility, particularly during extended maritime missions.
The programme also comes at a time when India is expanding its focus on indigenous defence manufacturing. The earlier Project 75 programme resulted in the construction of six Scorpene-class submarines at Mazagon Dock, providing India with substantial experience in domestic submarine construction.
Project 75(I) is intended to build upon this industrial experience while bringing additional technologies and capabilities through cooperation with a foreign original equipment manufacturer.
India- Defence Partnership Expands
The submarine agreement is part of a broader expansion in defence cooperation between India and Germany. In April 2026, Defence Minister Rajnath Singh visited TKMS's submarine-building facility in Kiel during his Germany visit. The two countries also signed a Defence Industrial Cooperation Roadmap aimed at strengthening cooperation in areas including co-development, co-production and defence supply chains.
Germany has also indicated interest in expanding cooperation with India beyond submarines. Areas such as unmanned systems, cybersecurity, missile technology and sensors have been identified as potential fields for deeper collaboration. The evolving partnership therefore has the potential to cover a much wider range of advanced defence technologies.
A Long-Term Industrial Opportunity
The proposed submarine programme is significant not only because of its financial scale but also because of its potential industrial impact. Domestic construction combined with technology transfer could help strengthen India's capabilities in one of the most technically demanding areas of naval manufacturing.
For Germany, the partnership provides an opportunity to deepen its defence-industrial relationship with India and establish greater cooperation in advanced maritime technologies. German officials have also highlighted the possibility of broader industrial collaboration involving Indian companies and international markets.
The MGMM Outlook
India and Germany are moving closer to finalising the proposed $8 billion Project 75(I) submarine programme, under which six advanced conventional submarines are expected to be built in India through cooperation between TKMS and Mazagon Dock Shipbuilders. With Germany having completed its approval process, the project now represents an important step toward combining advanced AIP technology with domestic construction and technology transfer, strengthening India’s capabilities in submarine manufacturing and naval technology.
The programme can also deepen the India-Germany defence-industrial partnership beyond submarines, with potential cooperation in areas such as unmanned systems, sensors, cybersecurity and missile technologies. By building on the experience gained through earlier domestic submarine programmes, Project 75(I) could further expand India’s skilled workforce, industrial supply chains and indigenous defence-manufacturing ecosystem while adding greater capability to the Indian Navy.
(Sources: The New Indian Express, OpIndia, Business Standard)
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