New Delhi

India is on the verge of finalizing two massive submarine contracts by mid-2026, as part of a strategic push to enhance its undersea warfare capabilities in the face of expanding Chinese naval power. The combined deals are expected to exceed ₹1 lakh crore in value.

Deal 1: Three Scorpene submarines from France

The first contract involves procuring three Scorpene-class submarines, to be jointly manufactured by Mazagon Dock Limited (MDL) and France’s Naval Group. While the project received initial clearance roughly two years ago, final negotiations on technical and commercial terms have been delayed—but are now nearing completion.

Deal 2: Six stealth diesel-electric submarines from Germany

The second deal calls for six advanced stealth diesel-electric submarines, valued at approximately ₹65,000 crore. Originally approved in 2021, the agreement is also expected to be formalized by mid-2026 once detailed cost talks conclude.

Notably, the German-Indian consortium led by ThyssenKrupp Marine Systems (TKMS) and MDL has emerged as the sole contender, as its Spanish rival failed to meet the Navy’s field trial standards.

Why these deals matter

Finalizing these contracts serves multiple strategic goals:

  • It modernizes India’s submarine fleet with Air-Independent Propulsion (AIP) technology, enabling stealthier and longer submerged operations.

  • It enhances indigenous shipbuilding under the Make in India initiative by promoting technology transfer and domestic production.

  • It strengthens India’s deterrence posture amid rising Chinese presence in the Indian Ocean Region.

    • Timeline and next steps

    Commercial negotiations for both projects are underway, with the Scorpene deal expected to be finalized earliest given its advanced stage. Delivery timelines suggest that the first submarines could begin entering service roughly six years after contract signing.

    Conclusion

    For India, these two mega submarine deals signify a pivotal leap in undersea defense capability. Once sealed, the acquisitions will not only fill critical capability gaps but also reinforce India’s role as a regional security anchor amid growing strategic competition.