The Indo-German submarine collaboration under Make-in-India is hot news. Before the maiden visit of German Chancellor Friedrich Merz's to India on January 12-13, 2026, a news report of January 8 stated that Germany and India are likely set to sign a major defence deal worth over USD 8 billion. And thatthis agreement will see German technology transferred for submarine production in India, marking a boost to India's naval capabilities.
The report, quoting sources who asked not to be named discussing confidential information, said that the agreement, negotiated ahead of Merz’s visit, would for the first time include technology transfer for submarine production. Also if the deal comes through, India would scrap plans to buy three more French submarines.
The report further said that Germany’s ThyssenKrupp Marine Systems (TKMS) and India’s state-owned Mazagon Dock Shipbuilders Ltd (MDL) will work together to manufacture the vessels, according to the sources, and that the new submarines will be equipped with air-independent propulsion (AIP) systems. AIP systems increase the boats’ endurance and allow them to remain submerged longer than with diesel-electric propulsion.
Another news report said that India and Germany are finalizing a significant $8 billion deal (Project 75I) for Germany's ThyssenKrupp Marine Systems (TKMS) to build six advanced, Air-Independent Propulsion (AIP) equipped Type-214NG submarines in India. These, the report went on to state, come as a major boost to India's naval strength, domestic defence manufacturing, and strategic partnership with Germany, with the deal expected to be formalized during Chancellor Friedrich Merz's visit in January 2026.
It may be noted that these submarines are part of Project 75I and procurement of six submarines under Project 75I was approved by the Defence Acquisition Council, headed by the then Defence Minister Arun Jaitley in October 2014.
During Merz's visit in January, India and Germany signed 19 memorandums of understanding (MoUs) and a Joint Statement was also issued, on defence co-production, critical tech (semiconductors, minerals), green energy (hydrogen), economic cooperation (CEO forum), healthcare (traditional medicine), and skill development. Along with agreements for hockey, education, and urban heritage projects to boost strategic ties and secure supply chains.
It is not known whether a MoU was signed on Indo-German collaboration for submarine production under Make-in-India, but there is no such mention in the Joint Statement during Merz’s visit.
Prime minister Narendra Modi also did not mention co-production of submarines in his speech.
Subsequent news reports, after the visit of Merz. have said that India and Germany have not yet signed the final contract for the six advanced submarines under the Project-75(I) program, but negotiations have reached an advanced stage. The deal is expected to be finalized by March 2026.
It states that the submarines will be based on the German Type-214 Next Generation (214NG) design and feature Air-Independent Propulsion (AIP) technology, which allows them to stay submerged for up to three weeks. Under Make-in-India, indigenous content is expected to start at 45% and rise to 60% for the final units.
According to an article in Eurasia Times, TKMS, which had initially declined to bid for Project 75I, entered the competition after the German government backed the project. This writer finds it intriguing that India, having built four SSBNs and currently building two SSNs (with a total of six SSNs planned), still needs to acquire Submersible Ship Hunter-Killer (SSKs) from Germany, especially after already inducting seven Scorpene-class SSKs with technology transfer from France.
Though the Indian Navy had initially stipulated that only operational submarine designs would be considered under Project 75I, TKMS has proposed a submarine based on its Type 214 design, incorporating specific modifications for the Indian Navy, such as enhanced stealth and AIP.
Since TKMS is not offering a fully operational, off-the-shelf design, the possibility of delays runs counter to the objective of fast-paced procurement, although TKMS successfully demonstrated the AIP capability on its Type 212 submarine during evaluation.
The article ‘After 10-Year Delay, India Set To Import German AIP Submarines In $8 Billion Deal; Setback For Atmanirbhar Bharat’ makes interesting reading (https://www.eurasiantimes.com/india-forced-to-import-8b-german-aip-submarines/#google_vignette).
The author has pinned the blame for delaying Project 75I primarily on the the Indian Navy drafted qualitative requirements (QRs) which were very ambitious; had the Indian Navy set realistic qualitative requirements at the outset, Larsen and Toubro (L&T), armed with SSN-building experience, could have built what the Navy is now buying from TKMS, filling gaps through partners of its own choosing.
To a certain extent this may be true but the draft QRs of the Navy should be seen in context of the polity crying hoarse about achieving 100% Atmanirbhar Bharat and the Ministry of Defence (MoD), also with a Chief of Defence Staff (CDS) heading the Directorate of Military Affairs (DMA(, who are not expected to scrutinize such issues (especially ones related to national security like this one), not function as a ‘post office’.
At the same time, can we discount other factors that may not be very apparent?
In mid-1997, the then Chief of Naval Staff, Admiral Vishnu Bhagwat had said that he was going to be sacked, which he unceremoniously was in December 1998. He was not even allowed to meet the President, the Supreme Commander of Armed Forces. The reason given by Admiral Bhagwat was that he wanted to promote submarine collaboration with South Korea, which was advanced in this technology. But the bureaucracy was backing collaboration with Germany for reasons that do not need much speculation.
Lt General Prakash Katoch is an Army veteran. The views expressed here are the writer’s own.