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Germany and India Deepen Defense Ties, Eye €8 Billion Submarine Build in Mumbai

The move underscores India’s push for local production alongside a gradual diversification of arms suppliers.

Overview

  • During Chancellor Friedrich Merz’s visit to Ahmedabad, the countries signed a defence-ministry memorandum to expand cooperation, but no defence contracts were concluded.
  • India plans to build six submarines in Mumbai with Thyssenkrupp Marine Systems in a project valued at about €8 billion, with a formal agreement still pending.
  • TKMS says it expects a contract by the end of March, and reporting indicates an option for three additional submarines may be included.
  • Beyond defence, 27 memoranda were announced across areas such as rare-earth cooperation, youth hockey programs, and recruitment for Germany’s health sector.
  • India remains the world’s largest arms importer, sourcing about 36% of purchases from Russia in 2019–2023 according to SIPRI, a share that has been declining as partnerships broaden.