Germany, India Near $8 Billion Submarine Deal with Tech Transfer

India
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CNBC TV18•08-01-2026, 16:28
Germany, India Near $8 Billion Submarine Deal with Tech Transfer
- •Germany and India are finalizing an $8 billion submarine manufacturing agreement, marking India's largest defense deal.
- •The agreement includes crucial technology transfer for submarine production, a first for India.
- •German firm Thyssenkrupp Marine Systems GmbH and India's Mazagon Dock Shipbuilders Ltd. will collaborate on manufacturing.
- •The deal, negotiated ahead of Chancellor Friedrich Merz's India visit, aims to reduce India's reliance on Russian weapons.
- •New submarines will feature air-independent propulsion systems, enhancing endurance and New Delhi's policing capabilities in the Indian Ocean.
Why It Matters: India secures its largest defense deal with Germany, gaining vital submarine tech and reducing Russian dependence.
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