India, Germany set to ink Project-75I submarine deal 'very soon': German ambassador

India and Germany are expected to sign an agreement for six next-generation conventional submarines "very soon", with the deal likely to be inked in the next month, German Ambassador to India Philipp Ackermann said on Thursday.

The proposed agreement, estimated to be worth around 8 billion euros (over ₹90,000 crore), is part of India's Project-75I programme to build six advanced conventional submarines for the Indian Navy in collaboration with a foreign technology partner.

"Submarine deal, I'm very hopeful and confident that it will be signed very soon, in the next month, maybe," Ackermann told reporters on the sidelines of an industry event organised by the Indo-German Chamber of Commerce (IGCC).

The project is expected to be executed by Germany's ThyssenKrupp Marine Systems (TKMS) and state-owned Mazagon Dock Shipbuilders Ltd (MDL).

The remarks come amid reports that the proposal has received approval from the Union finance ministry and is awaiting final clearance from the Cabinet Committee on Security (CCS), headed by Prime Minister Narendra Modi, before the contract can be signed.

The submarines will be built at MDL's Mumbai shipyard under the government's 'Make in India' initiative.

The vessels will be equipped with air-independent propulsion (AIP) systems, enabling them to remain submerged for longer durations and reducing the risk of detection.

Under the agreement, TKMS will transfer submarine design and technology to India.

The first submarine under the programme is expected to have a minimum indigenous content of 45%, which will rise to 60% by the sixth vessel.

The MDL-TKMS combine had prevailed over the Larsen & Toubro-Navantia partnership in the competition for the Project-75I contract.

MDL has previously built six Kalvari-class (Scorpene) diesel-electric submarines with technology transfer from France's Naval Group under the Project-75 programme. The Indian Navy commissioned the sixth and final submarine of that class, INS Vaghsheer, in January 2025.