India is currently on course for a US$ 8-billion mega deal that could prove transformative for the "Make in India" initiative: the strategic modernisation of its submarine arm. The Project 75 India (P-75I) programme promises a pivotal fusion of German engineering prowess and domestic industrial ambition. The acquisition of six conventional submarines, based on ThyssenKrupp Marine Systems’ Type 214/212 platform, will redefine India’s undersea deterrence.

Equipped with proven fuel-cell Air-Independent Propulsion (AIP), these vessels will boast an extended submerged endurance of up to four weeks — a critical capability in an era of intensifying Indo-Pacific rivalries. These boats are to be license-built at Mazagon Dock Shipbuilders Limited (MDL) in Mumbai, involving an unprecedented level of technology transfer. This deal, likely finalised by mid-2027, addresses vital capability gaps relative to China’s expanding fleet and will seed India’s future submarine industrial base.

Indigenous Content

By mandating indigenous content of 60% or more, P-75I aligns with the Indian Naval Indigenisation Plan (INIP). 

Capt. Shyam Kumar (Retd.), a noted defence analyst, observes, “Indian Navy has emerged as the most indigenised of the services, with many frontline warships featuring up to 75% local content. The commissioning of the aircraft carrier INS Vikrant in 2022 and the nuclear submarine INS Arihant stand as testaments to this design mastery.”

The Navy’s Warship Design Bureau (WDB) has honed world-class capabilities, exemplified by the Nilgiri-class stealth frigates and the Next Generation Destroyer (Project 18). Beyond hull architecture, the Navy is pivoting toward frontier technologies, including integrated electric propulsion and AI-driven combat management systems. 

Nurturing An Ecosystem

These platforms, designed for relevance into the 2060s, will serve as command nodes linking MQ-9 drones, P-8I aircraft, and satellite constellations.

Capt. Nikunj Parashar, founder of Sagar Defence Engineering, a leading firm manufacturing undersea drones, notes “initiatives like iDEX (Innovations for Defence Excellence) have empowered startups to develop high-end systems for national security.”

This ecosystem now includes over 550 Original Equipment Manufacturers (OEMs) and Micro, Small, and Medium Enterprises (MSMEs). 

Vice Admiral Shekhar Sinha (Retd.) points out, “A crucial reform was the appointment of Naval Officers as heads of PSU Shipyards, which significantly improved the coordination between the user and the builder."

Capital Outlay

A gathering storm, however, looms over these budgetary imperatives. 

Despite a 22% year-on-year increase in capital outlay for FY2026-27, defence spending remains below 2% of GDP. To counter the dual threats of a 370-ship Chinese fleet and Pakistan’s undersea modernisation, analysts argue for a 2.5% GDP benchmark.

The Navy’s odyssey — from iDEX innovators to expansive private docks — embodies strategic foresight. German AIP infusions and the Vikrant ecosystem herald a peer-competitive force; yet only robust and agile capital spending will forge unassailable maritime sovereignty in an era of contested seas.

(The writer is a senior journalist and analyst. Views expressed are personal.)