Germany and India are moving forward on discussions for a potential $8-billion defense program, aiming to build six German-designed conventional submarines for the Indian Navy. The talks are expected to take center stage during German Chancellor Friedrich Merz’s two-day visit to New Delhi in mid-January, where defense cooperation will be a core topic.
The Indian Navy currently operates 16 conventional submarines, including 10 that are more than three decades old, alongside a growing nuclear-powered fleet. The new vessels, proposed as Type 214 diesel-electric submarines equipped with air-independent propulsion (AIP), would extend underwater endurance to about six days—addressing a longstanding capability gap in India’s undersea operations.
Under the plan, Thyssenkrupp Marine Systems of Germany would partner with state-owned Mazagon Dock Shipbuilders Limited (MDL) to construct the submarines locally in India. The arrangement would include technology transfer, engineering support, design input, and technical consultancy from Germany, with MDL handling construction and delivery. Officials say the program could replace India’s planned purchase of three additional French-built submarines.
While no contract is expected to be finalized during Merz’s visit, the talks signal deepening defense ties. Germany recently removed approximately 110 defense items from its export control list, paving the way for greater industrial cooperation. Merz’s itinerary includes high-level meetings with Prime Minister Narendra Modi in Gujarat, visits to India’s technology hub Bengaluru, and cultural stops in Ahmedabad, reflecting the visit’s economic and diplomatic scope.
Analysts note that the potential submarine deal aligns with India’s broader push for domestic defense manufacturing and reduced reliance on Russian hardware. Since 2020, New Delhi has encouraged foreign manufacturers to establish local production lines for fighter jets, helicopters, and warships, part of a wider strategy to modernize its military and assert influence in the Indian Ocean region amid China’s growing presence.
The proposed collaboration would mark the largest-ever defense agreement for India and the first time a foreign partner is transferring submarine technology at this scale, underlining a strategic shift in Indo-German relations. For Germany, the deal also represents a step toward expanding defense exports and strengthening industrial ties in a rapidly growing market.
