India and Germany to Finalize $ 8 Billion Deal for Submarines
Germany and India are finalizing the specifics of a submarine production agreement valued at a minimum of $8 billion — the biggest defense contract for New Delhi, as per reports.
The accord, arranged prior to Chancellor Friedrich Merz’s trip to the South Asian country next week, would for the first time encompass technology transfer for submarine manufacturing.
India's navy has approximately twelve old Russian submarines and six new vessels from France. If the ongoing deal is finalized, India would abandon plans to acquire three additional French submarines.
Thyssenkrupp Marine Systems GmbH of Germany and state-owned Mazagon Dock Shipbuilders Ltd. of India will collaborate to produce the ships, according to reports.
During his first trip to India, Merz will hold discussions with Prime Minister Narendra Modi in Gujarat on Monday before heading to Bengaluru to visit German firms.
Also Read: A Brief History of India's Transformation Under PM Narendra Modi
According to the individuals, the two nations are expected to enhance collaboration in both the pharmaceuticals industry and defense. Merz aims to leverage his discussions with Modi to accelerate the wider negotiations between the European Union and India regarding a free-trade agreement.
Also Read: 5 Latest CHRO Appointments in Global Corporations
This will be Merz's initial overseas visit accompanied by a significant group of German CEOs. The chancellor plans to travel to China with a different business delegation in the upcoming weeks, although no date has been set with Beijing.
Also Read: How This Techie Turned Visa Struggles into Startup Success
The new submarines will feature air-independent propulsion systems that enhance the vessels’ endurance and enable them to stay submerged longer compared to diesel-electric propulsion, the individuals stated. The ships will enhance New Delhi's capacity to monitor the extensive waters of the Indian Ocean area as China increases its influence in the region.