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India Clears ₹70,000 Cr Deal with Germany for Six Next-Gen Submarines under Project 75(I)

India officially greenlights ₹70,000 crore deal to build six advanced submarines with Germany’s ThyssenKrupp, enhancing naval strength and indigenous manufacturing.

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On August 23, 2025, the Cabinet Committee on Security (CCS) approved formal negotiations enabling India’s Defence Ministry and Mazagon Dock Shipbuilders Ltd (MDL) to begin talks with Germany’s ThyssenKrupp Marine Systems (TKMS) for six advanced conventional submarines equipped with Air Independent Propulsion (AIP).

The ₹70,000 crore deal marks a strategic shift from the French Scorpene-class submarines currently in service and aims to significantly bolster India’s naval strength and indigenous defence manufacturing. Contract finalisation is expected within six to eight months, positioning the Indian Navy for enhanced maritime security in the Indo-Pacific.

Project 75(I): Next Generation Submarines for India’s Security

India’s existing conventional submarine fleet is built around the Kalvari-class, variants of France’s Scorpene design constructed under Project-75 at MDL. Six submarines are either in service or near induction, marking a return to complex submarine building in India. The follow-on Project 75(I) exclusively focuses on German Type 214 submarines outfitted with advanced AIP technology allowing undetected underwater endurance of up to three weeks, a substantial leap from the previous generation.

The CCS clearance authorises formal negotiations to cover design transfer, construction, and a high degree of indigenisation expected to reach around 60%. According to defence officials, this initiative supports Make in India while addressing the twin challenges of modernising the fleet and countering regional naval expansions by China and Pakistan.

Strategic Importance and Historical Context

The original Project-75 rejuvenated India’s domestic submarine construction capabilities but faced delays and technical challenges. Project 75(I) builds on these lessons with an ambitious timeline targeting delivery starting in the early 2030s. The deal follows rigorous evaluations focusing on proven AIP systems, with competitors from France, Russia, and Spain eliminated for lack of operational AIP technology.

TKMS’s Type 214 design offers significant advantages in stealth and endurance, aligning with India’s maritime strategy amid intensifying Indo-Pacific security dynamics. The navy plans to retire around ten ageing submarines in the next decade, making Project 75(I) crucial for sustained operational readiness. Additionally, India is progressing parallel nuclear submarine projects, enhancing multi-dimensional underwater deterrence.

The Logical Indian’s Perspective

The CCS’s decision to clear Project 75(I) negotiations highlights India’s pursuit of strategic autonomy and robust maritime defence capabilities through indigenous production.

The Logical Indian advocates seeing defence modernisation alongside diplomatic efforts for peaceful coexistence and stability in the region. While strategic deterrence is vital, fostering dialogue and regional partnerships are equally important to reduce conflict risks. 

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