India’s long-delayed Project-75I submarine program has entered a decisive phase. As of April 2026, the project has moved past technical evaluation, with ThyssenKrupp Marine Systems (TKMS) emerging as the preferred partner over Spain’s Navantia. The deal now awaits final approval from the Cabinet Committee on Security (CCS).
The bigger shift lies in the structure. India and Germany are moving toward an Inter-Governmental Agreement (IGA), which turns this from a corporate contract into a sovereign-backed strategic pact. This change directly impacts execution, timelines, and technology transfer.
Why the IGA Changes Everything
This isn’t just a business deal between shipbuilders. It is a state-backed agreement between New Delhi and Berlin. By choosing the IGA route, India ensures that the ₹99,000 crore investment stays protected from corporate risks.
If any issue arises with TKMS, the German government must step in and guarantee delivery. That removes the risk of supply chain disruption or project delays caused by financial or legal troubles within the company. This “sovereign guarantee” acts as a safety net for one of India’s most critical defence programs.
The structure also strengthens trust. It signals that Germany is willing to back its technology at a national level. For India, this ensures continuity in Transfer of Technology (ToT), long-term maintenance, and lifecycle support.
Quick Comparison: Why Germany Was Chosen
| Feature | Project-75I Specification | Strategic Benefit |
|---|---|---|
| Partner | TKMS (Germany) + MDL (India) | Strong ToT + Local Build |
| Technology | Fuel Cell AIP System | Higher stealth and endurance |
| Agreement | Inter-Governmental (IGA) | Sovereign guarantee from Germany |
| Competitor | Navantia (Spain) | Germany’s proven track record won |
Why Germany Won: Technology and Strategic Edge
The German proposal centers on a customized Type 214 submarine, often referred to as a U214 variant tailored for Indian requirements. This platform brings a major advantage in underwater endurance.
The key differentiator is the fuel-cell based Air Independent Propulsion (AIP) system. Unlike older Stirling-based systems, fuel-cell AIP offers quieter operation and longer submerged endurance. This directly improves stealth, which remains the most critical factor in submarine warfare.
India selected Germany not just for performance, but for reliability. TKMS has a proven track record in delivering advanced submarines across multiple navies. The addition of IGA backing further strengthens that credibility.
At a strategic level, this deal helps India close the submarine gap in the Indian Ocean Region. It enhances deterrence and strengthens underwater dominance against rising Chinese presence.
Industrial Role: MDL and “Make in India” Push
Mazagon Dock Shipbuilders Limited (MDL) will lead construction in India. This ensures that the project aligns with the “Make in India” initiative.
The ₹99,000 crore cost covers more than just six submarines. It includes technology transfer, local manufacturing infrastructure, and long-term maintenance capability. This investment builds domestic expertise in submarine construction, which remains a highly specialized field.
MDL’s role goes beyond assembly. It will absorb critical technologies and develop the capacity to support future submarine programs. This creates long-term strategic independence in underwater warfare capabilities.
What This Means for India’s Naval Strategy
The geopolitical reality is simple. Control under the sea defines power in the Indian Ocean. Project-75I strengthens India’s ability to track, deter, and, if required, neutralize hostile submarines.
The new submarines will operate with greater stealth and endurance. They will remain submerged longer and cover wider patrol areas. This directly improves India’s ability to secure sea lanes and protect maritime interests.
The IGA framework ensures that this capability arrives without delays or uncertainty. It transforms a long-pending procurement into a structured and secure program.
Project-75I is no longer just another defence deal. It is now a sovereign-backed strategic partnership between India and Germany.
The shift to an IGA removes risk, secures advanced technology, and ensures timely execution. With MDL leading construction and German AIP technology at its core, the program sets the foundation for India’s next generation of underwater power.
