India, Germany Near Rs 70,000-Crore Submarine Deal As Key Meeting Looms
India and Germany near a major submarine defence agreement.
India's long-delayed Project 75(I) submarine programme could move closer to a final contract, with the proposal expected to come before the Cabinet Committee on Security (CCS), according to sources. The programme involves the construction of six advanced conventional submarines for the Indian Navy at an estimated cost of around Rs 70,000 crore. The submarines are expected to be built primarily in India by Mazagon Dock Shipbuilders Ltd (MDL) in partnership with Germany's ThyssenKrupp Marine Systems (TKMS).
The project has remained under negotiation for several years, with discussions reportedly facing repeated delays over commercial terms and technical specifications. Approval from the CCS would clear a major hurdle and allow the government and companies involved to proceed towards contract signing and commencement of construction. The programme is also being closely watched because of its emphasis on domestic manufacturing and technology transfer.
TKMS has meanwhile been expanding its network of Indian industrial partners. The German company has signed an agreement with Hyderabad-based VEM Technologies for the development, construction, integration and eventual modernisation of heavyweight torpedoes. TKMS subsidiary ATLAS ELEKTRONIK is also involved in the arrangement, with VEM expected to handle integration and testing in India. The partnership has developed into a broader teaming agreement involving technology transfer and a Make-in-India torpedo project.
Also Read: Trump, Netanyahu Hold Off New Iran Strikes As Deal Parameters Take Shape
The German firm has also partnered with Mumbai-based CFF Fluid Control on anti-submarine warfare systems and is exploring additional cooperation with Indian organisations, including the Defence Research and Development Organisation (DRDO). For India, Project 75(I) is intended to strengthen domestic capabilities beyond the construction of individual submarines, with a focus on maintenance, upgrades, technology absorption and eventually greater indigenous design capability.
The proposed submarines are expected to feature air-independent propulsion (AIP), allowing them to remain submerged for longer periods than conventional diesel-electric submarines without such systems. They are also expected to be equipped with modern sensors, weapons and electronic warfare capabilities. The programme comes as the Indian Navy faces a shortage of conventional submarines and as Chinese submarine activity in the Indian Ocean region has increased.
India has previously operated German-designed Type 209/1500 Shishumar-class submarines, with several built at MDL from the 1980s onward. More recently, MDL constructed six Kalvari-class submarines with French assistance under Project 75, with the sixth and final submarine, INS Vagsheer, commissioned in January 2025. If Project 75(I) receives CCS approval, the subsequent contract is expected to define the workshare between the government, MDL and TKMS, including production schedules, technology transfer, maintenance and other long-term requirements.
Also Read: Trump Says US Pauses New Iran Strikes As Negotiators Agree Deal Parameters
