Germany has expressed strong optimism about concluding a major submarine cooperation agreement with India in the near future.

Defence Minister Boris Pistorius told reporters on Wednesday that he was “very, very confident” of signing the deal soon, adding that he expected the agreement to be finalised within the next three months.

The planned collaboration, valued at approximately $8 billion, has been under discussion for several months. It is being spearheaded by German warship manufacturer Thyssenkrupp Marine Systems (TKMS) alongside India’s Mazagon Dock Shipbuilders.

The project represents a significant step forward in bilateral defence cooperation, with both sides working to align industrial and strategic priorities.

What The $8B TKMS Subs Mean For India's Navy

The proposed $8 billion TKMS-Mazagon Dock submarine programme matters because it would give India six new conventional attack submarines with a much stronger underwater endurance, stealth and sensor suite than the ageing boats that currently dominate the Indian Navy’s conventional force.

The project is also strategically important because it is tied to domestic construction in India, technology transfer, and a gradual rise in indigenous content, which supports longer-term naval self-reliance.

India’s present submarine force is still relatively small and heavily dated at the conventional end: one source says the Navy currently operates seventeen diesel-powered attack submarines and one nuclear ballistic missile submarine, while another notes much of the conventional fleet is over 25 years old and many boats have needed refits.

That means the TKMS deal is not just a fleet replacement plan, but a capability reset for anti-surface warfare, anti-submarine warfare and covert patrols in the Indian Ocean.

The German offer is based on a customised Type 214-derived design tailored for Indian requirements, with air-independent propulsion, lithium-ion batteries and improved stealth features. Open reporting also says the design is intended to be built at Mazagon Dock, with TKMS providing design authority, engineering expertise and technical consultancy.

Air-independent propulsion is the key selling point, because it lets a conventional submarine remain submerged for much longer without snorkelling, improving survivability and reducing detection risk. In practical terms, that means these submarines should be far better suited for long-endurance operations in the Arabian Sea, Bay of Bengal and chokepoint-heavy approaches around the Malacca-linked Indian Ocean routes.

The reported Indian content profile is also significant. One report says indigenous content is expected to start at around 45 percent and rise to nearly 60 percent by the final boat, which would make the program more than a simple import and more of an industrial partnership.

Compared with China, the biggest regional benchmark, the TKMS boats would narrow the gap but not erase it. China’s Yuan-class conventional submarines already use AIP and quieting technologies, and open analysis notes that Chinese conventional boats are among the more modern in the region. India’s new submarines would therefore help restore some balance, but China’s broader undersea fleet depth remains larger.

Compared with Pakistan, the deal is even more consequential for India. Pakistan’s undersea modernisation, aided by Chinese support, has forced India to prioritise survivable conventional submarines that can hold an adversary’s surface fleet and sea lines at risk.

Six modern AIP boats built in India would improve India’s ability to maintain persistent pressure in the Arabian Sea and complicate enemy naval planning.

Against Western conventional submarines, the Type-214 family is a proven export design rather than a revolutionary one. Its strength is not novelty, but a balanced combination of low acoustic signature, AIP endurance, and a mature support ecosystem, which is often more valuable than chasing unproven futuristic features.

The deal is seen as a cornerstone of India’s efforts to modernise its naval capabilities while deepening defence ties with Germany. Pistorius’ remarks underscore the momentum behind the negotiations and the likelihood of a breakthrough in the coming months.

Capability Comparison

Category TKMS-Project-75I Boats Current Indian Diesel-Electric Boats Chinese Yuan-class Reference Pakistan’s Modernising Force
Endurance underwater High, due to AIP Lower, older conventional design High, also AIP-equipped Improving, but dependent on Chinese support
Stealth Strong emphasis on quieting and signature reduction Mixed, with many ageing hulls Strong, with modern quieting Emerging, but less transparent in capability
Industrial value Built in India with technology transfer Mostly legacy fleet and refits Foreign-built Chinese ecosystem Foreign-supplied modernisation
Operational impact Major boost to sea-denial and deterrence Insufficient for future needs Strong regional benchmark Raises pressure in the Arabian Sea

IDN (With Agency Inputs)