
India and Germany stand on the brink of sealing their largest military contract to date, centred on the joint production of six advanced submarines for the Indian Navy. This development coincides with the upcoming visit of German Chancellor Friedrich Merz to India on 12 and 13 January. The agreement promises to bolster India's underwater capabilities amid growing regional security challenges.
The deal involves ThyssenKrupp Marine Systems (TKMS), a German heavyweight in submarine manufacturing, partnering with Mazagon Dock Shipbuilders Limited (MDL), a Mumbai-based public sector undertaking under India's Ministry of Defence.
Valued at approximately $8 billion, the contract targets the construction of six Type 214 conventional submarines equipped with air-independent propulsion (AIP) technology. This pact builds on a memorandum of understanding signed between the two firms in June 2025.
TKMS brings its expertise as the global leader in non-nuclear submarines featuring AIP systems, which enable vessels to remain submerged for extended periods—up to six days in operational scenarios. MDL, renowned for its shipbuilding prowess, will handle the construction and delivery of the submarines entirely in India. The collaboration emphasises significant local content, aligning with India's push for indigenous defence manufacturing under initiatives like 'Make in India'.
Under Project-75 of the Indian Navy, these stealth submarines will incorporate the latest German engineering and design inputs, supplemented by TKMS consultancy. The AIP technology addresses a critical operational need, allowing diesel-electric submarines to operate without frequent surfacing for battery recharging, thereby enhancing stealth and endurance in contested waters.
This prospective deal revives a historical partnership tracing back to the late 1980s, when India acquired four HDW submarines from Germany. Two of those were built at MDL in 1992 and 1994, while the others were delivered directly from Germany. HDW has since been absorbed by TKMS, ensuring continuity in technological lineage.
The urgency of this contract stems from the Indian Navy's dire submarine shortfall. Currently, the force operates just 16 conventional submarines, with 10 exceeding 30 years of age. This fleet size mirrors the late 1990s levels, despite India's expanding maritime responsibilities in the Indian Ocean Region.
India's strategic submarine fleet has dwindled due to ageing vessels from the Sindhughosh and Shishumar-classes, compounded by delays in domestic programmes like Project 75I. The Navy now faces an acute capability gap, particularly against adversaries like China, which boasts over 70 submarines, many modern and AIP-equipped.
Chancellor Merz's visit could provide the political impetus to finalise negotiations, potentially including technology transfer clauses vital for India's self-reliance goals. The Type 214 platform, proven in service with navies like Greece and South Korea, offers a battle-tested design adaptable to Indian specifications, such as vertical launch systems for missiles.
Localisation efforts will see MDL ramp up infrastructure at its Mumbai yard, creating jobs and stimulating ancillary industries in steel, electronics, and propulsion systems. This aligns with recent defence corridors in Maharashtra and Uttar Pradesh, fostering a robust submarine ecosystem.
Geopolitically, the pact strengthens Indo-German defence ties, building on collaborations in areas like fighter jets and naval systems. It diversifies India's procurement away from traditional Russian suppliers, amid sanctions and delivery delays affecting platforms like the S-400.
For the Indian Navy, these submarines will enhance asymmetric warfare capabilities, including anti-surface and anti-submarine roles. Integrated with indigenous sensors and weapons like Astra missiles, they could form a potent underwater deterrent.
Challenges remain, including pricing negotiations and timelines, with construction expected to span nearly a decade. Ensuring AIP technology transfer without export restrictions will be pivotal, given Germany's stringent controls.
India's broader submarine ambitions include nuclear-powered vessels under Project 75 Alpha and the indigenous P-75I, but conventional boats like these Type-214s provide immediate relief. Success here could pave the way for future exports from Indian yards, positioning the nation as a submarine exporter.
This landmark deal not only addresses immediate naval voids but also cements a strategic alliance, propelling India's maritime power into the next decade. As Chancellor Merz lands in New Delhi, all eyes will be on whether ink meets paper to launch this underwater.
Agencies













