Archive · 9 Jan 2026
India, Germany near $8-billion submarine deal
India and Germany are working on a big deal to build submarines together.
This deal is worth about $8 billion and is the largest defence agreement India has ever made.
Germany will share technology with India to build these submarines, which will help India's navy.
The submarines will have special systems that let them stay underwater longer.
This deal is important because it will help India have more control over the waters around it, especially as China is becoming more active in the region.
The German chancellor, Friedrich Merz, will visit India soon to talk about this deal and other things like making medicines and a free-trade agreement between the European Union and India.
The deal is almost final, but there are still a few things to sort out.
The Indian Navy hopes to finish the deal by the end of the current financial year.
India and Germany are negotiating a ₹70,000-crore ($8-billion) submarine manufacturing deal, the largest-ever defence agreement for India.
The deal includes technology transfer for submarine production, a first for India.
India may scrap plans to buy three more French submarines if the deal goes ahead.
Thyssenkrupp Marine Systems GmbH and Mazagon Dock Shipbuilders Ltd. will collaborate to manufacture the submarines.
The submarines will be equipped with air-independent propulsion systems, enhancing their endurance and submerged capabilities.
- Who
- Germany and India
- What
- Negotiating a ₹70,000-crore ($8-billion) submarine manufacturing deal
- When
- Details being finalized ahead of Chancellor Friedrich Merz’s visit from January 12–13
- Where
- India, with meetings in Ahmedabad, Gujarat
- Why
- To deepen defence ties, include technology transfer, and reduce India's dependence on Russia for weapons
- Deal Value
- ₹70,000 crore ($8 billion)
- Companies Involved
- Thyssenkrupp Marine Systems GmbH, Mazagon Dock Shipbuilders Ltd.
- Technology Transfer
- Included for submarine production
- Submarine Features
- Air-independent propulsion systems
- Visit Details
- Chancellor Friedrich Merz to visit India from January 12–13
- Meeting Location
- Ahmedabad, Gujarat
- Additional Cooperation
- Trade, technology, education, and defence
- India's Current Submarines
- About a dozen aging Russian submarines, six new French-made models
Sources
India, Germany near $8-billion submarine deal ahead of Merz’s visit
Germany and India on verge of $8 billion submarine agreement
₹70,000 cr submarine deal to feature during German Chancellor Friedrich Merz’s visit to India
German envoy, def secy discuss priority areas for co-production of defence equipment
