Rs 90,000-crore boost for Navy: India-Germany submarine deal nears final nod

India is moving closer to finalising one of its largest defence acquisition programmes, with negotiations with Germany for six next-generation submarines under Project 75I entering the final phase. Sources told India Today that the deal, estimated at around €8 billion (about Rs 90,000 crore), is expected to be concluded by September 2026, subject to completion of the remaining approval process.

The proposal’s final major hurdle before being placed before the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, is a detailed assessment of the technology transfer package being offered by German shipbuilder ThyssenKrupp Marine Systems (TKMS).

A government-appointed technical evaluation group will review the scope, depth and long-term value of the technologies proposed under the agreement before submitting its recommendation.

Officials said the review is intended to ensure that India gains meaningful capabilities that can support domestic submarine design, manufacturing and long-term maintenance.

"A significant investment is being made in technology transfer, so it is important to assess how much capability it will create within the country over the long term," a source familiar with the process said.

The proposal has already received approvals within the Ministry of Defence. Once the technical review is completed, the project is expected to be sent to the CCS for final clearance.

After government approval, the contract between Mazagon Dock Shipbuilders Limited (MDL) and TKMS is likely to be signed within one to two months.

Defence sources said discussions have gathered pace following Defence Minister Rajnath Singh’s visit to Germany earlier this year.

Singh travelled to Germany in April on a three-day official visit focused on expanding defence industrial cooperation, strengthening military engagement and exploring collaboration in emerging sectors.

While the visit was not directly linked to the submarine negotiations, officials said it helped reinforce broader defence ties between the two countries.

WHAT IS PROJECT 75I?

Project 75I is among the Indian Navy’s most important modernisation efforts and aims to build six advanced diesel-electric attack submarines equipped with fuel cell-based Air Independent Propulsion (AIP) technology.

The system allows submarines to remain underwater for longer periods while operating with greater stealth.

The submarines will be built in India by MDL under the strategic partnership model with TKMS.

Officials expect local content levels to range between 45 and 60 per cent, supporting the government’s Make in India initiative and expanding India’s domestic submarine-building capabilities.

The new vessels are expected to include upgraded sensors, combat systems and weapon capabilities, along with long-term maintenance support.

SUBMARINES EXPECTED BY 2032

If the agreement proceeds on schedule, construction is expected to begin soon after signing, with the first submarine likely to join the Indian Navy around 2032–33.

Defence planners consider Project 75I critical as India seeks to strengthen its conventional submarine fleet amid growing competition in the Indian Ocean Region and expanding undersea capabilities of China and Pakistan.

India currently operates 20 submarines, including conventional and nuclear platforms. Officials say the induction of Project 75I submarines will provide a major boost to underwater endurance, stealth and indigenous manufacturing capability.

- Ends