In a remarkable display of diplomatic engagement, top leaders from Germany and Spain have made high-profile visits to India, aiming to secure a substantial defense contract to co-develop and co-produce six Air-Independent Propulsion (AIP)-equipped submarines for the Indian Navy. This intense competition highlights India’s growing role as a strategic partner in the Indo-Pacific and a highly sought-after market for defense technologies.
Following closely on the heels of German Chancellor Olaf Scholz’s visit, Spanish President Pedro Sánchez has arrived in India, underscoring both nations’ commitment to strengthening defense and trade ties. This rivalry places two European defense contractors—Germany’s Thyssenkrupp Marine Systems (TkMS) and Spain’s Navantia—at the center of a critical race to secure India’s prestigious Project-75I submarine deal. This contract represents a significant step toward modernizing India’s naval capabilities amid increasing Chinese maritime presence in the Indo-Pacific region.
German Chancellor Olaf Scholz’s visit to India is a cornerstone of Germany’s effort to bolster defense relations and secure the submarine contract through TkMS. This visit was strategically timed with the arrival of two German warships, the frigate Baden-Württemberg and the supply vessel Frankfurt am Main, in Indian waters, underscoring Germany’s naval capabilities and its commitment to a broader Indo-Pacific strategy.
Germany’s courtship of India goes beyond the immediate submarine deal. German officials have proposed transforming India into a maintenance hub for German ships operating in the Indo-Pacific, leveraging the logistics agreement to streamline repairs and maintenance. Such a partnership could significantly benefit both nations by enhancing Germany’s regional presence and supporting India’s military modernization goals.
The German side has also announced plans to station a liaison officer at India’s Information Fusion Centre for the Indian Ocean Region, a strategic move highlighting Germany’s interest in strengthening its defense ties with India. This cooperation comes after Germany issued export licenses for defense materials following German Defense Minister Boris Pistorius’s visit in June 2023. This series of initiatives signals a deepening strategic partnership, with Germany positioning itself as a reliable long-term partner for India.
Following Scholz’s departure, Spanish President Pedro Sánchez embarked on his first visit to India in nearly two decades, focusing on establishing a more robust economic and defense partnership. Sánchez inaugurated the Final Assembly Line Plant for the C-295 aircraft in Vadodara, a project that is part of a €2.5 billion contract with Airbus Defense and Space SA for the delivery of 56 C-295 aircraft to India. This deal stipulates that 16 aircraft will be delivered directly from Spain, while 40 will be manufactured domestically by Tata Advanced Systems Ltd. This initiative marks the first private-sector assembly line for military aircraft in India, showcasing Spain’s commitment to India’s “Make in India” program.
Beyond aerospace, Spain’s defense contractor Navantia is actively pursuing the submarine contract, backed by a partnership with Larsen & Toubro (L&T), a leading Indian defense manufacturer. This collaboration highlights Navantia’s intent to not only export submarine technology but to co-develop and co-produce submarines with India. Navantia’s AIP system, dubbed the BEST (Bio-Ethanol Stealth Technology) system, has been marketed as cutting-edge technology, providing extended underwater endurance with a low acoustic signature. The system is currently undergoing final evaluations, with a production-ready model expected to be available by 2026.
India’s Project-75I aims to equip its Navy with six AIP-equipped submarines designed to operate in challenging maritime environments across the Indo-Pacific. These submarines, featuring a combination of fuel-cell AIP technology and Lithium-ion batteries, promise extended underwater endurance, lower operational costs, and reduced emissions, making them both cost-effective and environmentally friendly. By integrating these advanced submarines, India aims to enhance its capability to patrol the Bay of Bengal and the Arabian Sea, especially given China’s increasing influence in these waters.
The AIP technology enables submarines to remain submerged for extended periods without surfacing for oxygen—a critical advantage in stealth operations. Additionally, the technology allows submarines to travel long distances at low speeds while Lithium-ion batteries enable rapid acceleration. This capability could prove crucial for the Indian Navy’s ability to respond swiftly to threats in the Indo-Pacific, providing India with a strategic advantage over other regional powers.
As Germany’s TkMS and Spain’s Navantia compete for India’s favor, each company brings its unique technological offerings and competitive advantages.
TkMS’s Fuel Cell Technology: TkMS has been promoting its compact fuel-cell AIP system, which offers long operational endurance with minimal emissions. While TkMS has an established reputation with a series of successful submarine projects globally, its AIP system would require modifications to meet India’s specific requirements, given its smaller size than specified in India’s tender documents. In March 2024, Germany invited an Indian Navy team to participate in field evaluation trials aboard the Type 212-class submarine, which demonstrated the operational capabilities of its AIP system.
Navantia’s BEST System: Spain’s Navantia has put forward its Bio-Ethanol Stealth Technology (BEST) system for Project-75I, which incorporates bioethanol to produce hydrogen for fuel cells. The BEST system offers the added advantage of producing hydrogen onboard, eliminating the need for hazardous storage, and allowing extended underwater endurance with reduced noise. However, Navantia’s technology has yet to be fully operational on any submarine, with the first production-ready model scheduled for delivery by 2026.
Both contenders present distinct advantages: TkMS’s solution is already operational in multiple navies worldwide, demonstrating proven reliability, while Navantia’s innovative BEST system could offer India a more versatile, albeit slightly unproven, AIP technology tailored to India’s needs.
Beyond the technical merits, the Indian government may consider broader geopolitical factors when awarding the Project-75I contract. Germany’s active participation in the Indo-Pacific and its advocacy for a rules-based order align closely with India’s own strategic vision. By partnering with TkMS, India could strengthen its ties with a European power committed to supporting freedom of navigation and regional stability in the Indo-Pacific.
Spain’s offer to co-develop the C-295 aircraft in India also bolsters its case, showcasing a significant level of commitment to India’s industrial and defense ecosystems. With Navantia’s willingness to share technology and its collaboration with L&T, Spain’s proposal supports India’s ambitions of becoming a global defense manufacturing hub under its “Make in India” initiative.
The outcome of the Project-75I tender will have a significant impact on India’s defense manufacturing sector, particularly as the government seeks to transform the nation into a major hub for defense technology and manufacturing. By inviting TkMS and Navantia to establish local production facilities and share their AIP technology, India aims to reduce its dependence on imports, create jobs, and enhance its technological capabilities.
Moreover, the co-production of these submarines will not only address India’s immediate defense requirements but also pave the way for future export opportunities. The successful execution of this project could position India as a leading defense exporter, contributing to the country’s long-term economic growth and geopolitical influence.
