German Chancellor Olaf Scholz’s recent visit to India has been focused on advancing a $5.2 billion agreement between Germany and India to jointly construct six conventional submarines in India. The naval project is a significant milestone for the Western military manufacturing power, as it aims to help India reduce its reliance on Russian military hardware.
India’s strategic location in the Indian Ocean region has made it a critical player in the geopolitical landscape of the region. With the rise of China’s military assertiveness in the region, India has been looking to upgrade its naval capabilities. The Indian Navy has been actively seeking to modernize its aging submarine fleet, which currently consists of Russian-origin Kilo-class and German-origin HDW submarines.
The proposed deal with Germany is a part of India’s Project-75I, which aims to build six diesel-electric submarines in India. The project has been in the works for over a decade, and several global manufacturers, including France’s Naval Group and Russia’s Rosoboronexport, had expressed interest in the project.
Germany’s ThyssenKrupp Marine Systems (TKMS) had also participated in the bidding process for the Project-75I and was shortlisted along with Naval Group. However, in July 2021, India’s Defense Ministry announced that it had selected TKMS as its preferred bidder for the project.
The six submarines to be built under the agreement will be equipped with advanced technology and weapon systems, including Air Independent Propulsion (AIP) systems, which will significantly enhance the submarines’ operational capabilities. The AIP system allows the submarines to stay underwater for an extended period without the need to surface, making them less vulnerable to detection.
The submarines will be constructed at Mazagon Dock Shipbuilders Limited (MDL) in Mumbai, in collaboration with TKMS. The project is expected to create around 2,000 jobs in India and will also provide a significant boost to the country’s defense manufacturing sector.
The deal with Germany marks a significant shift in India’s defense procurement policy, as it moves away from its traditional reliance on Russian military hardware. India has been the largest importer of Russian defense equipment, with over 60% of its military inventory being of Russian origin. However, with the growing strategic partnership between India and the United States, India has been seeking to diversify its defense procurement sources.
Germany has been actively seeking to expand its defense exports, and the deal with India marks a significant achievement in that regard. The agreement also highlights Germany’s commitment to strengthening its strategic partnership with India, which has been steadily growing in recent years.
The agreement between Germany and India to build six submarines is a significant milestone for both countries. For India, it marks a significant shift in its defense procurement policy, as it seeks to diversify its sources and reduce its reliance on Russian military hardware. For Germany, the deal represents a significant achievement in its efforts to expand its defense exports and strengthen its strategic partnership with India. The project is expected to provide a significant boost to India’s defense manufacturing sector and create thousands of jobs in the country.
Just before Modi’s visit to Paris in May 2022, France’s Naval Group backed out of the project due to its failure to meet the requirements set forth by the Indian government in 2021. Now, During Scholz’s visit, the two nations will discuss the submarine project, for which Germany’s ThyssenKrupp Marine Systems (TKMS) is one of two international bidders. Berlin would support the agreement. Scholz is committed to reviving India’s defence and trade relations, according to another foreign ministry official. Government officials in Berlin suggested that the German government would likely support such a deal. Although there is no official decision, the coalition government has loosened its stance on India’s transfer of guns and permitted the export of a package of military hardware at the beginning of February.
