Germany Expects $8 Billion India Submarine Deal Within Three Months

Germany expects to finalise a major $8 billion submarine cooperation agreement with India "soon," Berlin's defence minister Boris Pistorius said on Wednesday. "I am very, very confident that I will be able to sign it soon," Pistorius told Reuters, adding that he expected the deal to be concluded within the next three months. The proposed $8 billion agreement, under discussion for several months, involves German shipbuilder ThyssenKrupp Marine Systems (TKMS) and India's Mazagon Dock Shipbuilders Limited. It is part of India's broader plan to strengthen its naval capabilities under Project-75I, which focuses on acquiring advanced diesel-electric submarines equipped with Air Independent Propulsion (AIP) systems. The development comes as defence minister Rajnath Singh is on a three-day visit to Germany, during which both countries signed a Defence Industrial Cooperation Roadmap and an Implementing Arrangement for Cooperation in UN Peacekeeping Training. According to the ministry of defence, these agreements are aimed at boosting institutional collaboration and expanding opportunities for joint training, capacity building, and capability development. During bilateral talks in Berlin, the two sides reviewed a wide range of defence and security cooperation areas, including co-development and co-production of military equipment, with a focus on niche and emerging technologies. Both ministers reaffirmed their commitment to strengthening military-to-military engagement as a key pillar of the India-Germany strategic partnership. "Delighted to meet Mr. Boris Pistorius, Federal Minister of Defence, Germany in Berlin. Exchanged views on a wide range of issues including deepening our defence cooperation and tackling emerging geopolitical challenges. Witnessed signing of the Defence Industrial Roadmap and Implementing Arrangement for Cooperation in UN Peacekeeping," Singh said in a post on X. Rajnath Singh described his visit as a reflection of the "deep friendship, synergy and trust" between the two countries, noting that defence ties have gained significant momentum in recent years. He also highlighted the importance of the India-EU Security and Defence Partnership signed earlier this year, saying it opens new avenues for deeper engagement. Both sides agreed to leverage this framework to enhance regional stability and strengthen joint capabilities. India has also invited the German Air Force to participate in the upcoming Exercise TARANG SHAKTI, scheduled to be held later this year. India and Germany share a long history of defence cooperation dating back to the 1950s. Early collaborations included the licensed production of the Shaktiman truck based on German MAN designs, as well as the induction of the Dornier-228 aircraft, which continues to serve in the Indian Air Force, Navy, and Coast Guard. Submarine cooperation has also been a key pillar, with India earlier acquiring Shishumar-class submarines from Germany. The proposed new deal is expected to significantly enhance India's underwater capabilities, particularly with the integration of AIP technology that allows submarines to remain submerged for longer durations. The partnership is further expanding into defence manufacturing, with Hyderabad-based VEM Technologies signing an agreement with TKMS to produce heavyweight torpedoes in India.