India to Import German AIP Submarines in $8 Billion Deal

India is set to sign a landmark $8 billion agreement with Germany for the acquisition of six advanced diesel-electric submarines, featuring Air Independent Propulsion (AIP), after a decade-long procurement process. The deal, expected to be finalized during Chancellor Friedrich Merz’s visit to India, will involve collaboration between Germany’s Thyssenkrupp Marine Systems (TKMS) and India’s Mazagon Dock Shipbuilders Ltd. (MDL). The submarines will be produced domestically in India, with significant technology transfer from the German side. The Ministry of Defence (MoD) granted approval in August 2024, paving the way for these state-of-the-art vessels—intended to bolster the Indian Navy’s capabilities under Project 75I. TKMS joined the project after receiving support from the German government, despite initial hesitations regarding the terms of the tender.