India and Germany are on the brink of finalizing a major defense agreement valued at around $8 billion (about ₹70,000 crore) that will significantly enhance India’s naval strength and defense production capabilities.
India and Germany Near Historic $8 Billion Submarine Deal
Biggest Defence Pact in India’s History
The proposed deal, expected to be signed soon, would become one of India’s largest-ever defence agreements. Under this framework, German technology will be shared with Indian partners to build advanced submarines locally rather than merely importing them.
Collaboration Between Indian and German Firms
The partnership will involve Germany’s Thyssenkrupp Marine Systems (TKMS) and India’s state-owned Mazagon Dock Shipbuilders Ltd (MDL). Together they are expected to construct the vessels in Indian shipyards with German technical support.
A significant aspect of this deal is the transfer of submarine-building technology — a first for India — enabling indigenous manufacturing instead of relying on imports. This aligns with India’s policy goals to strengthen local defense production and reduce dependence on foreign systems.
Strategic and Naval Benefits
These submarines are likely to be equipped with modern features such as air-independent propulsion (AIP) systems, which allow them to remain submerged longer than traditional diesel-electric submarines. This capability is crucial for extended missions, especially in the strategically important Indian Ocean Region as regional maritime competition grows.
Currently, the Indian Navy operates a mix of older Russian-built submarines and newer French models. If the German agreement proceeds, India may reconsider plans to procure additional French submarines, redirecting focus to this new collaboration.
Political Momentum and Wider Cooperation
The timing of the deal’s conclusion coincides with German Chancellor Friedrich Merz’s upcoming visit to India, which is being viewed as a key diplomatic moment to cement the agreement and expand broader strategic ties. During his trip, discussions will also include boosting collaboration in other sectors like pharmaceuticals and pushing forward negotiations on a free-trade agreement between India and the European Union.
Broader Defence and Industrial Impact
This agreement reflects a shift in India’s defense procurement strategy, prioritizing technology partnerships and local production over direct imports. It supports the ongoing “Make in India” initiative and could help reduce reliance on traditional suppliers, reshaping India’s defense industrial base in the long term.
