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India and Germany Near $8 Billion Submarine Deal Ahead of Merz Visit

The proposed Project 75(I) plan would bring German AIP submarine technology to Mazagon Dock for production in India.

Overview

  • Negotiations are at an advanced stage for a pact worth at least $8 billion, with discussions described as confidential and no signed contract announced.
  • Thyssenkrupp Marine Systems is expected to partner with state-owned Mazagon Dock to build six submarines in India with technology transfer for the first time.
  • The boats under discussion would feature air-independent propulsion to extend submerged endurance, strengthening the Indian Navy’s patrol capability in the Indian Ocean.
  • Talks intensify ahead of Chancellor Friedrich Merz’s Jan 12–13 visit, following the German ambassador’s meeting with India’s defence secretary to prioritise co-development and co-production.
  • The deal maps to Project 75(I), where pricing and an intergovernmental enabling agreement are still being negotiated, with indigenisation targets rising from 45% to 60% and first delivery expected seven years after contract signature.