Thyssenkrupp Marine Systems (TKMS) is positioning itself to transform the Project 75 India (P75I) submarine contract into a catalyst for establishing a robust shipbuilding hub in India. This strategic initiative aims not only to meet the immediate requirements of the Indian Navy but also to foster a long-term framework for naval manufacturing and exports. As part of this vision, TKMS has proposed collaborating with Mazagon Dock Shipbuilders Limited (MDL) to set up a joint manufacturing hub for constructing submarines, surface vessels, and autonomous marine vehicles. TKMS CEO Oliver Burkhard emphasized that producing these assets in India could cut costs by as much as 50% compared to Germany, thanks to lower labor expenses.

This initiative is seen as a cornerstone of a broader strategic partnership between Germany and India, aimed at countering Chinas increasing influence in the Indo-Pacific region. The geopolitical landscape, coupled with heightened global demand for advanced naval defense systems, underscores the importance of this proposal. Recent conflicts and evolving regional security dynamics have further accelerated the need for such collaborations.

The P75I project involves building six state-of-the-art diesel-electric submarines equipped with Air Independent Propulsion (AIP) systems. These systems significantly enhance stealth capabilities and operational efficiency, allowing submarines to stay submerged for longer durations. A key feature of the contract is its emphasis on technology transfer and skill development for Indian shipbuilders. By the time the fourth submarine is delivered, it is expected that 60% of its components will be sourced domestically, a notable increase from the 45% planned for the first submarine.

The competition for the P75I contract is fierce, with TKMS contending against a consortium of Larsen Toubro (LT) and Spain’s Navantia. While both bids are under evaluation by the Indian Navy, TKMS’s advanced and proven AIP technology gives it a distinct advantage over Navantia, whose AIP-equipped submarines are not expected to become operational until 2026.

If TKMS and MDL win the contract, their vision extends beyond addressing domestic naval requirements. They aim to position India as a global hub for exporting naval equipment, targeting key markets in Southeast Asia and South America. This plan seeks to leverage India’s cost advantages and strategic location while bolstering its defense manufacturing capabilities. Through the P75I project, TKMS’s ambition to establish a significant shipbuilding hub in India underscores the economic potential and strategic significance of this venture in the evolving global defense landscape.

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