Mazagon Dock Shipbuilders Limited (MDL) has officially commenced negotiations with the Indian Navy for the Submarine Project-P75(I), following clearance by the Central government to the Ministry of Defence (MoD) and MDL in August 2025.

This project entails the design, construction, and delivery of six advanced conventional submarines equipped with Air Independent Propulsion (AIP) systems, to be built in India with technical and technology support from German submarine manufacturer ThyssenKrupp Marine Systems (TKMS).

MDL's role as a leading shipbuilding PSU positions it as a critical contributor to India's naval capability enhancement and indigenous shipbuilding development. The estimated project cost is about ₹70,000 crore, reflecting a significant defence manufacturing initiative aimed at strategic self-reliance.

Initial discussions began as early as January 2025, with hopes to conclude commercial and technical terms shortly, backed by the approval process from the MoD.

This collaboration is expected to create an ecosystem enabling advancements in Indian maritime defence technology that could potentially compete in the global market. The P75(I) project is part of a broader national vision to modernise and strengthen India’s maritime defence.

On a wider scale, the government is strongly committed to developing India as a global maritime powerhouse and shipbuilding hub. The Ministry of Ports, Shipping and Waterways along with the Directorate General of Shipping announced ambitious goals to place India among the top 10 maritime nations by 2030 and within the top 5 by 2047.

Currently, India's maritime sector contributes about 4% to the GDP and holds just 1% of global tonnage, with plans to elevate this contribution to 12% of GDP while boosting its global ranking from 16th to 5th by 2047. Indian seafarers constitute about 12% of the global workforce, targeted to expand to 25%, with shipbuilding and repair viewed as key drivers of this transformation.

The government has launched several initiatives including a ₹25,000 crore Maritime Development Fund, the Shipbuilding Financial Assistance Policy (SBFAP) 2.0 with enhanced funding till 2036, and incentives promoting green shipping and modern infrastructure.

Maharashtra, a major maritime gateway, has introduced India's first Shipbuilding, Ship Repair, and Ship Recycling Policy 2025 to contribute significantly toward national shipbuilding targets, including establishment of clusters and stand-alone shipyards with subsidies and fiscal incentives. These policies are forecasted to unlock over ₹18,000 crore in investment and generate more than 140,000 jobs by 2047.

Further cooperation with global maritime innovators such as Norway under trade agreements aims to enhance adoption of sustainable maritime technologies including LNG-powered vessels and zero-emission fuels like hydrogen and ammonia.

This aligns with India's larger goals of scaling up its blue economy, increasing employment, and boosting global competitiveness through modernised shipbuilding and repair capabilities.

The Submarine Project-P75(I) with Mazagon Dock and ThyssenKrupp Marine Systems symbolises a major step toward strategic naval modernisation and indigenous defence production, set within the context of India's broader maritime ambition to rise as a leading global shipbuilding nation and maritime economy by mid-century.

Based On ET Infra News Report