New Delhi: In a landmark move to bolster its naval might, India has cleared a ₹70,000 crore defense deal with Germany to build six cutting-edge submarines under the long-awaited Project-75 India (P-75I). The Defence Ministry has authorized Mazagon Dock Shipbuilders Limited (MDL) to begin formal negotiations with Thyssenkrupp Marine Systems (TKMS), Germany’s leading submarine manufacturer.
Strategic Edge Beneath the Surface
The submarines will feature Air-Independent Propulsion (AIP), allowing them to stay submerged for up to three weeks without surfacing, which is a game-changing advantage in underwater warfare. All six submarines will be built in India, with German technology support, significantly boosting indigenous defense manufacturing under the ‘Aatmanirbhar Bharat’ initiative.
Reviving a Stalled Project
After years of delays, the project has gained fresh momentum. With MDL-TKMS emerging as the only compliant bid, the government moved swiftly to initiate talks, expected to start by the end of August. The first submarine is projected for delivery within 6–7 years of signing.
Market Reaction & Industrial Impact
The announcement triggered a nearly 4% surge in MDL’s stock, reflecting market confidence in India’s biggest-ever submarine construction project. The deal is expected to create high-tech jobs, energize defense R&D, and elevate India’s shipbuilding sector.
Filling a Critical Naval Gap
India’s current fleet of 16 conventional submarines is aging. The new boats will bridge critical capability gaps as delays continue in retrofitting AIP into older Scorpene-class vessels. Project-75I aims not just to replenish, but redefine India’s underwater warfare edge in a region where maritime tensions are rising. This deal marks more than defense procurement; it is a declaration of India’s intent to lead in undersea warfare, deepen strategic ties with Germany, and take control of its maritime future.
