India is on the verge of finalizing two massive submarine deals worth over $12 billion (Rs 1 lakh crore) by mid-2026 to bolster its undersea warfare capabilities, particularly in response to China’s growing naval strength, sources revealed.
The first deal involves acquiring three Scorpene submarines, to be jointly built by Mazagon Dock Limited (MDL) and France’s Naval Group, at an estimated cost of $4.3 billion (Rs 36,000 crore). Approved over two years ago, the project faced delays due to complex technical and commercial negotiations but is now nearing completion.
The second, a $7.8 billion (Rs 65,000 crore) project, aims to procure six advanced diesel-electric stealth submarines under Project 75 India (P75-I). German shipbuilder ThyssenKrupp Marine Systems (TKMS), partnered with MDL, is a key contender for this ambitious “Make in India” initiative, with cost negotiations set to begin soon.
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A senior official stated, “We expect both contracts to be finalized by mid-2026.” The Scorpene deal, a follow-on to the Navy’s earlier Project 75, which delivered six submarines, is further along, with commercial talks nearly complete. However, the P75-I program, being a new initiative, will require six to nine months for negotiations.
The Indian Navy is pushing to expedite both deals to strengthen its underwater fleet. Deliveries for both projects are expected to begin around 2032, six years after contract signing. Sources emphasized that MDL must enhance its infrastructure to handle both projects concurrently, given past delays, particularly with the Scorpene program.
India’s defense ministry had previously approved the Scorpene deal alongside a $7.7 billion (Rs 64,000 crore) agreement for 26 Rafale marine jets, finalized in April 2025 for deployment on INS Vikrant. With these submarine deals, India aims to significantly enhance its naval prowess in the Indo-Pacific.
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