India and Germany are working on a deal to build submarines worth at least $8 billion. This will be the biggest defense deal for India so far. In the media report, quoting officials related to the matter, it has been said that this agreement is being finalized before the visit of German Chancellor Friedrich Merz to India next week. This will include giving technology transfer to India for the first time to make submarines.
At present the Indian Navy has about a dozen old Russian submarines and six new submarines made in France. If this new deal goes through, India will abandon plans to buy three more submarines from France. German company Thyssenkrupp Marine Systems and Indian government company Mazagon Dock Shipbuilders will jointly build these submarines.
German government spokesperson said that Chancellor Merz, who is coming on his first visit to India, will meet Prime Minister Narendra Modi in Gujarat on Monday. After this he will go to Bengaluru, where he will visit German companies. Both countries can increase cooperation in pharmaceutical industry and defense sector. In his talks with Modi, Merz will also focus on accelerating the negotiations on a free-trade agreement between the European Union and India.
This will be Marj's first foreign trip, in which many big German businessmen will also be accompanying him. Marj is also planning to visit China in the coming weeks, although the date has not been decided yet. The new submarines will have an air-independent propulsion system, which will enable them to remain underwater for a longer time than submarines with diesel-electric systems. This will increase India's surveillance capability in the Indian Ocean region, where China is increasing its presence.
A spokesperson for ThyssenKrupp Marine Systems has not yet commented on the issue. At the same time, India's Defense Ministry and Foreign Ministry also did not give any immediate reply. This deal indicates further strengthening of defense relations between India and Germany and there are many reasons behind this. India has long been encouraging foreign defense companies to partner with Indian companies and share technology, so that arms manufacturing can increase in the country. In 2020, the Modi government had banned the import of most defense equipment like fighter aircraft, helicopters, cannons and warships so that foreign companies could produce in India.
