India Nears ₹70,000-Crore Submarine Deal With Germany After Years Of Delays
Our take

The impending submarine deal between India and Germany, nearing a substantial ₹70,000 crore (approximately $8.4 billion USD), represents a critical juncture in India’s naval modernization efforts. Years of delays underscore the complexities of such acquisitions, particularly when balancing indigenous manufacturing aspirations with the need for advanced, proven technology. The Indian Navy currently faces a significant shortfall in conventional submarines, a capability vital for maintaining subsurface domain awareness and projecting power in the Indian Ocean region. This acquisition, involving six Type 212A submarines, directly addresses this deficiency, although it also highlights the ongoing challenge of bridging the gap between domestic submarine production and the immediate operational requirements of a rapidly evolving security landscape. Recent developments, such as China’s fourth Type 075 Amphibious Assault Ship achieving combat qualification in the South China Sea China’s Fourth Type 075 Amphibious Assault Ship Achieves Combat Qualification In South China Sea and increased Russian naval activity around UK waters Royal Navy Steps Up Monitoring As Russian Naval Activity Around UK Waters Rises 25%, further emphasize the dynamic and increasingly contested nature of maritime environments globally.
The strategic implications of this deal extend beyond simply adding submarines to the Indian Navy's fleet. The Type 212A submarines, known for their advanced air-independent propulsion (AIP) systems allowing for extended underwater endurance, will significantly enhance India's ability to conduct covert operations and maintain persistent underwater surveillance. The decision to procure these submarines from Germany, rather than pursuing a fully indigenous build, reflects a pragmatic approach to addressing immediate capability gaps. While India has made strides in submarine construction through collaborations and indigenous development programs, achieving full self-reliance remains a long-term goal. The concurrent deployment of the USS Abraham Lincoln in the Indian Ocean and reports of incidents involving U.S. Navy personnel Iran Claims 7 U.S. Navy Personnel Killed, Several Injured In Clash Aboard USS Abraham Lincoln underscore the volatile geopolitical dynamics in the region, necessitating robust naval capabilities for India to safeguard its maritime interests and contribute to regional security. The integrated data ecosystem required to effectively utilize these advanced assets will be crucial for realizing their full potential, necessitating investment in sensor networks, data analytics, and secure communication infrastructure.
From a broader perspective, this acquisition highlights the growing importance of underwater warfare in the 21st century. As surface navies become increasingly vulnerable to advanced missile systems, the subsurface domain is emerging as a critical arena for strategic competition and power projection. The emphasis on AIP technology in the Type 212A submarines underscores this trend, as nations seek to enhance the stealth and endurance of their submarine fleets. The longitudinal data generated by these submarines, combined with other oceanographic and intelligence data, can contribute significantly to a more comprehensive understanding of the underwater environment, informing strategic decision-making and improving maritime domain awareness. The calibrated integration of this new capability with existing naval assets will be paramount to maximizing its effectiveness and ensuring seamless interoperability.
Looking ahead, the successful integration of the Type 212A submarines into the Indian Navy will require sustained investment in crew training, maintenance infrastructure, and data analytics capabilities. A key question will be how effectively India can leverage the technology transfer associated with this deal to advance its own indigenous submarine construction program. The continued evolution of underwater technology, including advancements in autonomous underwater vehicles (AUVs) and unmanned underwater vehicles (UUVs), will also necessitate ongoing adaptation and investment to maintain a competitive edge. Monitoring the impact of this acquisition on regional power dynamics, particularly in relation to China’s naval expansion, will be essential for assessing its long-term strategic significance.


India’s long-delayed plan to build six new conventional submarines could soon move forward, with the nearly Rs 70,000-crore Project 75(I) proposal expected to come before the Cabinet Committee on Security (CCS) in the coming days, according to an NDTV report.
The programme has been delayed for years because of negotiations over technical requirements, commercial terms and technology transfer.
It involves Mazagon Dock Shipbuilders Ltd (MDL) in Mumbai and Germany’s ThyssenKrupp Marine Systems (TKMS), with the submarines planned to be built mainly in India.
If the CCS approves the proposal, the contract could be signed and work could begin.
Why India needs the submarines?
The Indian Navy is facing a shortage of conventional submarines, making the programme important for its underwater capabilities.
The six submarines are expected to have air-independent propulsion (AIP), which would allow them to stay underwater for longer than conventional diesel-electric submarines without having to surface or use their snorkels as often.
They are also expected to have modern sensors, torpedoes, missiles and electronic warfare systems. These capabilities would support longer patrols, surveillance and sea-denial operations.
The programme comes at a time when Chinese submarine activity in the Indian Ocean has increased.
India has already built six Kalvari-class submarines at MDL with French assistance under Project 75. The first entered service in 2017, while the sixth and final submarine, INS Vagsheer, was commissioned in January 2025.
TKMS expands partnerships in India
While Project 75(I) has been under negotiation, TKMS has also been developing partnerships with Indian companies.
The German company has signed an agreement with Hyderabad-based VEM Technologies to develop, produce, integrate and eventually modernise heavyweight torpedoes.
TKMS subsidiary ATLAS ELEKTRONIK is also part of the arrangement. VEM will handle integration and testing in India. The partnership later developed into a teaming agreement covering technology transfer and a Make-in-India torpedo programme.
TKMS has also partnered Mumbai-based CFF Fluid Control on anti-submarine warfare systems. It is looking at further cooperation with Indian organisations, including the Defence Research and Development Organisation (DRDO).
India wants to strengthen its ability to build, maintain and upgrade submarines and eventually develop its own design capabilities.
The proposed partnership between MDL and TKMS also builds on a long-standing relationship between India and Germany. India has operated German-designed Type 209/1500 Shishumar-class submarines for decades, with several built at MDL beginning in the 1980s.
References: Firstpost, NDTV
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