New Delhi, Jan 8 (.) India and Germany will conclude a submarine manufacturing deal during the upcoming visit of German Chancellor Friedrich Merz here on January 12-13, aimed at bolstering India’s maritime security, especially in the Indo-Pacific region.
The two countries will also hold discussions on strengthening bilateral cooperation in several areas, including Defence, trade, investment and technology.
The deal, worth about 8 billion USD, is the largest-ever Defence agreement for India. It would, for the first time, include technology transfer for submarine production.
This will be Chancellor Merz’s first official visit to India. He will travel to Ahmedabad and Bengaluru and have a meeting with Prime Minister Narendra Modi on January 12 in Ahmedabad. The two leaders will take stock of the progress made in diverse aspects of the India-Germany Strategic Partnership, which completed 25 years last year.
The discussions will also focus on further intensifying cooperation in trade and investment, technology, education, skilling and mobility, while also advancing collaboration in important domains of defence and security, science, innovation and research, green and sustainable development, and people-to-people relations.
“The two leaders will take stock of the progress made in diverse aspects of the India-Germany Strategic Partnership, which completed 25 years last year,” the External Affairs Ministry said.
Germany’s Thyssenkrupp Marine Systems GmbH and India’s Mazagon Dock Shipbuilders Ltd. (MDL) will work together to manufacture the vessels.
Thyssenkrupp Marine Systems (TKMS) India is the local presence of the German naval defence giant, focused on submarine and surface combat system solutions, actively collaborating with Indian Defence entities like MDL for building advanced submarines with significant technology transfer, aiming to boost indigenous naval capabilities under India’s ‘Make in India’ initiative.
They provide engineering, design, and support for naval vessels, serving as a key player in modernising India’s underwater fleet through strategic partnerships, with recent developments focusing on major defence deals and technology transfer.
For the first time, Germany will include a comprehensive transfer of technology for submarine production to India, a key component of India’s “Make in India” Defence initiative.
The deal is for six advanced conventional submarines based on an enlarged Type 214 design, which will feature cutting-edge Air Independent Propulsion (AIP) systems. This technology allows the submarines to remain submerged for significantly longer periods (up to two to three weeks) than conventional diesel-electric boats, enhancing stealth and endurance.
The project mandates 45 per cent indigenous content in the first submarine, rising to 60 per cent for subsequent vessels. The final deal is expected to cost around Rs 90,000 crore. The first submarine is expected to be delivered approximately seven years after the contract is signed (around 2032).
The deal is critical for the Indian Navy, which is facing a depletion of its submarine fleet with several ageing Russian Kilo-class and German HDW submarines set for retirement in the next decade.
‘’This agreement aims to bolster India’s maritime security in the Indo-Pacific region and reduce its long-standing dependence on Russian military hardware,’’ a senior official said.
. RB 1828