India–Germany Near $8 Billion Project 75I Submarine Manufacturing Deal Under “Make in India”

– Principal builder under the programme, likely beneficiary of sustained defence revenues. – Potential programme supplier for sonar, combat systems, sensors and related electronics. India and Germany are reportedly close to finalising a **major defence manufacturing agreement worth roughly $8 billion under Project 75(I) to co-produce six advanced submarines equipped with Air-Independent Propulsion (AIP) technology. The talks are progressing ahead of German Chancellor Friedrich Merz’s visit to India in January 2026, with India’s state-owned Mazagon Dock Shipbuilders Ltd partnering German firm ThyssenKrupp Marine Systems (TKMS) for construction and technology transfer. The programme aims to replace many of India’s ageing conventional submarines, enhancing stealth, endurance and undersea warfare capabilities as geopolitical pressures rise in the Indo-Pacific. Large defence contracts with technology transfer can influence order pipelines, revenue visibility and long-term production cycles for domestic manufacturers (e.g., MDL). Defence electronics and subsystem suppliers (e.g., BEL, L&T defence units) may see engineering and integration opportunities. Policy-driven “Make in India” initiatives aim to deepen local value addition and reduce reliance on imports. Sustained defence spending typically reflects strategic priorities rather than short-term economic cycles, so market reaction can be nuanced and long-term rather than immediate. Strategic defence deals with tech transfer strengthen naval capability, support local manufacturing and create long-term revenue visibility for Indian defence ecosystem companies.