India’s Ministry of Defence has secured a monumental Rs 40,000 crore discount on a deal for three additional Scorpene-class submarines from France, slashing the initial Rs 75,000 crore price tag to approximately Rs 36,000 crore.

The breakthrough, announced today, underscores the ministry’s relentless negotiation strategy, yielding significant savings for the Indian Navy and other armed forces’ modernization projects.

The agreement, a collaboration between France’s Naval Group, Mazagon Dock Shipbuilders Limited (MDL), and Bharat Electronics Limited, builds on the success of the P75 Scorpene program, which saw its sixth submarine, INS Vaghsheer, commissioned in January 2025.

The revised deal, finalized after months of hard-fought talks, integrates advanced indigenous technology, including the DRDO-developed Air Independent Propulsion (AIP) system, enhancing submarine endurance and stealth.

Defence officials credit the savings to a negotiation drive initiated under former Defence Secretary Ajay Kumar, with a mantra of maximizing every penny for military upgrades. The discount, nearly 53% off the original quote, frees up funds for other critical procurements, amplifying India’s naval capabilities amid rising Indo-Pacific tensions. The deal also aligns with the ‘Make in India’ ethos, with the submarines set to be constructed at MDL’s Mumbai facility, boosting domestic industry.

Prime Minister Narendra Modi hailed the outcome during talks with New Zealand PM Christopher Luxon today, subtly nodding to such strategic partnerships. The savings come as India diversifies its defence acquisitions beyond traditional suppliers like Russia, positioning itself as a regional counterweight to China.

This fiscal win marks a milestone in Indo-French defence ties, with both sides eyeing further collaboration in missiles and jet engines.