India and Germany are on the cusp of finalising a historic $8 billion agreement to build six advanced submarines under Project-75(I), a deal set to become the largest defence procurement in India’s history. Sources indicate that the agreement, currently in advanced negotiation stages, is expected to be signed by the end of March, cementing a landmark milestone in Indo-German defence cooperation.
The long-delayed Project-75(I) aims to modernise India’s ageing conventional submarine fleet while significantly enhancing the Indian Navy’s underwater warfare and deterrence capabilities amid growing Chinese and Pakistani naval activity in the Indian Ocean region. The deal involves construction of six Type-214 Next-Generation conventional diesel-electric attack submarines, chosen for their fuel-cell-based air-independent propulsion (AIP) system that allows them to remain submerged for weeks rather than days, sharply reducing detection risk.
The programme, estimated at Rs 70,000–72,000 crore ($8 billion), surpasses the Rs 58,000-crore Rafale fighter jet deal signed with France in 2016, reflecting its strategic and financial significance. Under a strategic partnership model, the submarines will be built domestically by Mazagon Dock Shipbuilders Ltd in collaboration with Germany’s ThyssenKrupp Marine Systems, with plans to achieve 45–60 per cent indigenisation. The deal is also expected to include technology transfer to support domestic submarine production, strengthening India’s ‘Make-in-India’ initiative.
The Indian Navy currently operates about a dozen Russian submarines and six French-made models. The Project-75(I) procurement was initially approved by the Defence Acquisition Council in October 2014, with the formal request for proposal issued in July 2021. The programme is projected to not only enhance naval capabilities but also expand India’s shipbuilding ecosystem, particularly benefiting MSMEs through development of associated spares, systems, and equipment for submarine production.
India has ramped up efforts under its Naval Indigenisation Plan 2015–2030, with 51 large ships currently under construction, valued at approximately Rs 90,000 crore. Since 2014, Indian shipyards have delivered over 40 indigenous warships and submarines to the Navy, averaging one new vessel every 40 days over the past year. Analysts say Project-75(I) will further consolidate India’s strategic autonomy in the maritime domain while bolstering domestic defence manufacturing and industrial capabilities.
