India advances its Rs 70,000 crore German submarine defence contract

India's highly anticipated Project 75(I) defence initiative is moving closer to final approval. Defense officials expect the Cabinet Committee on Security to evaluate the proposed Rs 70,000 crore contract very soon. This major procurement focuses on building six advanced conventional submarines for the naval forces.

Mazagon Dock Shipbuilders Ltd in Mumbai will construct these vessels alongside Germany's ThyssenKrupp Marine Systems. Negotiations spanned several years due to disagreements over exact technical specifications and commercial arrangements. Approval from the national security committee will allow both sides to officially sign documents and begin manufacturing operations.

Expanding Local Defence Capabilities

ThyssenKrupp Marine Systems is actively expanding its domestic footprint before official clearance arrives. The German corporation recently partnered with VEM Technologies in Hyderabad to create, test, and upgrade heavyweight torpedoes. This collaboration includes technology transfers supported by ATLAS ELEKTRONIK. Furthermore, the German contractor reached an agreement with CFF Fluid Control in Mumbai for anti-submarine warfare technology and seeks deeper ties with the Defence Research and Development Organisation.

Building domestic manufacturing muscle remains a primary goal for the government. Leaders want local shipyards to master complex designs rather than simply assembling foreign parts. These upcoming vessels feature air-independent propulsion technology, enabling them to stay submerged much longer than standard diesel-electric alternatives. Modern sensor suites, advanced torpedoes, precision missiles, and electronic warfare modules will equip these new maritime assets.

Strategic Fleet Enhancements Required

Naval commanders urgently need new submarines to address current fleet limitations. Extended underwater endurance is crucial right now, especially as Chinese naval presence increases rapidly across the Indian Ocean region. The current shortfall in conventional submarines makes this upcoming project essential for maintaining regional maritime security.

Historically, the navy successfully operated German-designed Shishumar-class boats dating back to the 1980s. More recently, Mazagon Dock completed six French-assisted Kalvari-class vessels, commissioning the final unit, INS Vagsheer, in January 2025. This upcoming agreement essentially revives an old maritime partnership while placing much greater emphasis on home-grown industrial growth. Final documents will outline exact timelines for production milestones and future fleet maintenance.

Representative Image as Shown