Record Rs 1.06 Lakh Crore Submarine Deal To Make Indian Navy A Global Undersea Power
The landmark deal, part of the ambitious Project 75I, will significantly elevate India's maritime strength and drive a new chapter in indigenous defence manufacturing
India is preparing to execute its largest-ever defence contract, a Rs 1.06 lakh crore mega deal poised to transform the Indian Navy into a formidable undersea force within the next decade. As geopolitical tensions intensify in the Indo-Pacific, especially with China's growing footprint in the Indian Ocean and Pakistan's expanding naval ambitions, this move signals India's most ambitious naval modernisation effort yet.
The defence ministry is likely to award the twin submarine contracts to Mazagon Dock Shipbuilders Limited (MDL) by the end of the next financial year, sources indicate. This landmark deal, part of the ambitious Project 75I, will significantly elevate India's maritime strength and drive a new chapter in indigenous defence manufacturing.
India's submarine arsenal currently comprises 16 conventional submarines, recently reinforced by the addition of INS Vagsheer under the original Project-75. This project saw the successful induction of six Kalvari-class Scorpene submarines, now regarded as the backbone of India's underwater combat capability.
The Indian Navy's newest warship, INS Tamal, was also recently inducted. Built in collaboration with Russia and armed with the lethal BrahMos cruise missile, it adds another sharp edge to India's surface fleet.
But while these developments mark progress, officials believe India must scale up quickly to counter regional threats. China's People's Liberation Army Navy (PLAN) operates a staggering 355 warships and submarines, making it the world's largest naval force. Pakistan, meanwhile, is also enhancing its undersea warfare capabilities with China's support.
Germany's TKMS To Partner In The Rs 70,000 Crore Project
Under Project-75I, MDL will collaborate with Germany's ThyssenKrupp Marine Systems (TKMS) to build six state-of-the-art submarines based on the HDW Class 214 design. These will be fitted with Air Independent Propulsion (AIP) systems, enabling them to remain submerged for up to two weeks without surfacing, a significant tactical advantage.
These submarines, 72 metres in length and weighing 2,000 tonnes, will carry eight weapon tubes and accommodate a 27-member crew. The AIP system generates electricity from the chemical reaction of hydrogen and oxygen, allowing stealth operations without detectable engine noise.
A key clause in the deal mandates 45% indigenous content in the first submarine, rising to 60% by the sixth. Technology transfer from TKMS will eventually empower India to manufacture future submarines independently. The first vessel is expected seven years after the contract is signed, with the remaining delivered annually.
Rs 36,000 Crore Boost For Next-Gen Submarines
In parallel, the government is also poised to greenlight a second submarine contract worth Rs 36,000 crore for building three next-generation Scorpene-class submarines. These will be an upgraded version of the existing Kalvari class and will carry 60% indigenous content. The design will be similar to those delivered to the Brazilian Navy.
The first submarine under this program will be delivered in six years, followed by two more at yearly intervals. Together with the HDW-class, these additions are set to massively upgrade the Indian Navy's undersea strike capabilities.
Indigenous AIP System And Weaponry
India's thrust toward self-reliance is further underlined by the Defence Research and Development Organisation (DRDO) successfully developing an indigenous AIP system. In December 2024, the government signed a Rs 1,990 crore deal with MDL to install this system on existing Kalvari-class submarines, starting with INS Kalvari during its major refit in September 2025.
In a separate deal worth Rs 877 crore, India has partnered with France's Naval Group to equip Kalvari-class submarines with electronic heavyweight torpedoes, enhancing their lethality under the sea.
Employment, Industrial Growth And Naval Expansion
The scale of these defence projects is expected to generate significant employment. The AIP initiative alone will create an estimated three lakh man-days of work. MDL has already partnered with over 50 Indian companies, while the Indian arm of Naval Group is training more than 70 Indian engineers on advanced submarine technologies.
MDL's current manufacturing infrastructure supports the construction of 11 submarines and 10 destroyers simultaneously. The company has already proven its capability by successfully delivering all six submarines under the original Project-75. India's long-term maritime strategy involves developing a 175-ship strong navy by 2035. At present, the Navy has over 130 vessels, with 61 new warships in various stages of construction.
Strategic Significance In Asia-Pacific
The renewed push under Project-75I and the Scorpene expansion is not just about numbers – it's a strategic imperative. India must maintain a credible undersea deterrent and power projection capability in the Indian Ocean Region (IOR) and beyond, especially as China and Pakistan aim to assert influence in critical sea lanes.
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China defence deals indian navy indian ocean pakistan submarine
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First Published:
July 11, 2025, 16:26 IST
News india Record Rs 1.06 Lakh Crore Submarine Deal To Make Indian Navy A Global Undersea Power
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