India and Germany are on the brink of finalizing a historic $8 billion submarine deal under Project-75I, a defence collaboration, if finalized, will be one of India’s largest ever defence contracts and could strengthen India’s strategic autonomy while deepening bilateral ties with Germany.
What Is Project - 75I
Project-75I is an initiative to build six advanced conventional submarines equipped with Air Independent Propulsion (AIP) systems. These submarines will be constructed in India through a Strategic Partnership between India’s Mazagon Dock Shipbuilders Limited (MDL) and Germany’s ThyssenKrupp Marine Systems (TKMS). The agreement is projected to include full technology transfer, allowing India to develop critical undersea warfare expertise domestically.
AIP technology is a major upgrade over traditional diesel-electric systems, allowing submarines to stay submerged for significantly longer period.
Why This Deal Matters
The Indian Navy’s submarine fleet includes aging platforms that are due for replacement. Project - 75I modern submarines will dramatically enhance India’s underwater capabilities.
Make in India & Indigenous Manufacturing - Instead of importing finished vessels, India will build these submarines domestically. The contract emphasizes indigenisation (over 60% content) and technology transfer, aligning with the government’s self reliant goals.
Strengthening India–Germany Ties - The deal marks a major shift in India–Germany relations, moving beyond traditional trade and technology partnerships toward deep defence collaboration. For Germany, it’s a gateway into the Indian defence market and a chance to position its high technology at the heart of India’s security architecture.
India is one of the largest buyer of arm’s and presently has major business with Russia, Israel, France and USA while this will be an entry for Germany also.
Current Status & Timeline
The negotiations have intensified ahead of German Chancellor Friedrich Merz’s visit to India on January 12th and 13th, 2026. We expect the deal to be closed possibly by March 2026.
If concluded, the first submarine deliveries are targeted in the early 2030s, with subsequent vessels entering service in annual increments thereafter.
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