India and Germany Near Signing Landmark $8 Billion P75I Submarine…

Sarah J · 2026-02-03T15:57:12.000Z

India and Germany are close to finalising a major defence agreement worth around $8 billion (approximately ₹72,000 crore) under Project-75India (P75I) an ambitious initiative to build six advanced conventional submarines for the Indian Navy. Officials say the pact could be signed by the end of March 2026, marking a significant step in bilateral defence cooperation and undersea capability modernisation. The Project-75I programme long in the making is designed to equip India with state-of-the-art conventional diesel-electric submarines featuring Air-Independent Propulsion (AIP) systems that enhance underwater endurance and stealth. Under the current frameworks, the submarines will be co-built in India by Mazagon Dock Shipbuilders Limited (MDL) in collaboration with ThyssenKrupp Marine Systems (TKMS) of Germany. A key feature of the P75I deal is the deep technology transfer and indigenisation baked into the plan. While TKMS will provide design authority, engineering expertise and critical technologies, MDL a major Indian shipyard with experience in naval construction will lead manufacturing. Initial submarines are expected to have at least 45 % indigenous content, rising to around 60 % by the time the final vessel is completed. The agreement has progressed rapidly following a government-to-government (G2G) Inter-Governmental Agreement (IGA) signed earlier in January 2026, which laid the groundwork for cooperation, technology sharing, personnel training and export clearances between India and Germany. Once formalised, the contract is expected to usher in a new era of undersea capability for the Indian Navy strengthening deterrence, surveillance and maritime security amid increasingly contested waters in the Indo-Pacific region. Analysts note that the integration of AIP technology will allow these submarines to remain submerged for much longer durations than conventional designs, enhancing operational flexibility and survivability. Strategically, the deal represents one of India’s largest defence procurement projects in recent years. It aligns with the country’s “Make in India” and Atmanirbhar Bharat (self-reliant India) defence manufacturing ambitions, by building advanced platforms domestically while acquiring world-class technologies from a trusted European partner.

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India and Germany Near Signing Landmark $8 Billion P75I Submarine… | SEINET