India and Germany are on the cusp of finalising one of New Delhi’s most consequential defence industrial agreements to date, with a proposed $8 billion (around ₹70,000 crore) pact for the construction of six next-generation conventional submarines for the Indian Navy. The agreement, expected to be sealed in the coming days, represents the culmination of the long-delayed Project-75 (India) or Project-75I programme, a cornerstone of India’s efforts to modernise its underwater warfare capabilities.
At the heart of the deal is a strategic partnership between German defence heavyweight ThyssenKrupp Marine Systems (TKMS) and India’s state-owned Mazagon Dock Shipbuilders Limited (MDL). Under the arrangement, TKMS will provide the advanced submarine design, specialised consultancy, and critical technology transfer, while MDL will act as the primary construction partner, building all six submarines at its Mumbai facility.
The Indian Navy has formally selected the German Type 214NG (Next Generation) submarine, a 2,500-tonne platform widely regarded as one of the most capable diesel-electric attack submarines currently on offer in the global market. The German design prevailed over the competing S-80 Plus submarine proposed by Spanish shipbuilder Navantia after an exhaustive evaluation process spanning several years.
A decisive factor in the Navy’s choice was its uncompromising requirement for a sea-proven Air-Independent Propulsion (AIP) system. The Type 214NG employs a mature fuel-cell-based AIP technology that enables submarines to remain submerged for weeks without surfacing, drastically reducing the risk of detection. Conventional diesel-electric submarines, by contrast, typically need to surface or snorkel every few days to recharge their batteries, exposing them to enemy sensors.
While the Spanish S-80 Plus offered a bio-ethanol-based AIP system, Indian Navy evaluators reportedly viewed it as less operationally proven. The German fuel-cell AIP, already in service with several navies across Europe and Asia, was considered a lower-risk and more combat-ready solution, particularly given India’s demanding operational environment.
The groundwork for this mega-deal was laid in June last year when TKMS and MDL signed a Memorandum of Understanding to jointly pursue Project-75I. That agreement outlined a broad framework for collaboration, with a strong emphasis on technology transfer and indigenous manufacturing — two pillars of India’s defence procurement policy.
In line with the government’s flagship ‘Make in India’ initiative, all six submarines will be constructed domestically. Officials familiar with the project say the first boat will feature at least 45% indigenous content, a figure that will progressively rise to around 60% by the sixth and final submarine. This phased localisation strategy is intended not only to deliver advanced military platforms but also to nurture a sustainable domestic ecosystem for submarine design, construction, and life-cycle support.
Defence planners see Project-75I as a critical step toward reducing India’s long-standing dependence on foreign suppliers for complex underwater platforms. Over time, the skills and infrastructure developed through this programme are expected to feed into future indigenous submarine projects, including next-generation conventional and potentially nuclear-powered designs.
The timeline for final approval has reportedly been accelerated by high-level diplomatic engagement between New Delhi and Berlin. Sources indicate that the deal is likely to receive its final political clearance during the upcoming visit of German Chancellor Friedrich Merz, who is scheduled to be in India on January 12 and 13. His visit is expected to provide the necessary political impetus to sign the inter-governmental agreement, formally unlocking the contract.
For Germany, the agreement would mark one of its largest-ever defence exports to India and a significant expansion of its strategic footprint in the Indo-Pacific region. Berlin has been increasingly vocal about its interest in contributing to stability and security in the region, amid growing concerns over maritime competition and freedom of navigation.
For India, the stakes are even higher. The Indian Navy currently operates an ageing fleet of conventional submarines, including Russian-origin Kilo-class boats and German-designed Type 209 submarines, many of which are approaching the end of their operational lives. Delays in Project-75I have long raised concerns within naval circles about a looming capability gap.
This concern is sharpened by China’s rapid naval expansion. Beijing has steadily increased its presence in the Indian Ocean Region, deploying modern AIP-equipped conventional submarines and nuclear-powered attack and ballistic missile submarines. Analysts say this trend has significantly altered the undersea balance in Asia, underscoring the urgency of India’s submarine modernisation plans.
Once inducted, the Type 214NG submarines are expected to significantly enhance India’s ability to conduct extended patrols, intelligence gathering, and sea-denial missions across vast stretches of the Indian Ocean. Their advanced stealth, endurance, and sensor suites will bolster India’s underwater deterrence posture at a time of intensifying strategic competition.
If concluded as expected, the India–Germany submarine pact will not only address a critical operational requirement but also stand as a landmark in India’s evolving defence industrial strategy — blending foreign technology, domestic manufacturing, and strategic partnerships to meet long-term security challenges.
