A submarine manufacturing agreement between Germany and India is close to being reached with a possible investment of at least $8 billion, making this the biggest ever defense deal if materialized and bringing Indo-German relations to a new level, official sources said.
This deal is being framed prior to Germany’s visit to India by Germany’s, Friedrich Merz, next week, and this deal is very important for numerous reasons, the first one being that this will include technology transfer in making these submarines. If this deal is signed, then it will allow India to manufacture one of the most complex platforms in the world.
Joint production with Indian shipyard
As proposed, Thyssenkrupp Marine Systems would produce the submarines in India, in collaboration with the Mazagon Dock Shipbuilders Limited, which is a public sector shipbuilder in India. According to officials, these submarines would be equipped with AIP, which would enable them to remain under water for an extended period compared to conventional diesel-electric submarines.
Be it thereby resolved that this resolution is in support of the plans of the Indian Navy to pursue development projects that would enable it to develop these capabilities, in view of the fact that it is competing with China in the Indian Ocean region.
Move away from the French and Russian models
At present, its subs consist of a dozen or so second-hand Russian-origin subs and six more from France. The upcoming contract with Germany will make it forgo its plan to purchase three subs from France, which will cause its whole strategy for making naval acquisitions to undergo a drastic change.
Although the government has been making efforts to boost local production, the country is the second-largest importer of defense equipment globally, with Russia being its main supplier of weapons, as indicated by the Stockholm International Peace Research Institute.
Strategic and economic landscape
Such discussions form part of a bigger initiative that seeks to promote military and industrial collaborations between India and Germany. During his visit to this country, Merz is scheduled to hold discussions with Prime Minister Narendra Modi in Gujarat, before proceeding to Bengaluru to engage with such German companies operating in this country.
In addition to defence, the two countries are also considering ways in which they might work together on the manufacture of pharmaceuticals and high-tech industries. Merz is likely to insist on accelerating work on a proposed free trade agreement between the European Union and India, which would treat India as an important trading partner in view of the European desire to spread its supply chains.
ALSO READ: How India used a Trump-linked lobbyist during Operation Sindoor and US trade tensions
Policy push from New Delhi and Berlin
India’s interest in the deal is part of the Modi government’s strategy of encouraging foreign defence companies to produce their hardware in the country and share vital technology. In 2020, the government of India stopped the import of various large defence systems to induce global companies to move their production lines to the country.
For Germany, “willingness to transfer submarine technology that is sensitive” represents a further shift in policy that has been evident for Germany ever since Russia’s invasion of Ukraine, which led to Germany’s swift decision to enhance its military production capacity.
The endless talks are further emphasized by a recent meeting between German Ambassador Philipp Ackermann and Indian Defence Secretary Rajesh Kumar Singh, in which it was decided between the two countries that they will discuss co-development and co-production of defense equipment.
As Thyssenkrupp Marine Systems remains tight-lipped on the issue, it remains to be seen what the implications of the proposed deal might hold for the future of undersea warfare in the Indian forces, with the defense and exterior ministries of the Indian government awaiting a release of a press statement.
FOR MORE: https://civiclens.in/category/national-news-civiclens-in/
About the Author
