India is likely to conclude two major submarine deals valued at over ₹1 lakh crore by mid-2026. The acquisitions are intended to boost the Indian Navy’s undersea warfare capabilities in response to China’s growing naval presence, official sources told PTI.
The first deal covers three Scorpene-class submarines, to be jointly constructed by state-owned Mazagon Dock Limited and France’s Naval Group. Although the contract, worth nearly ₹36,000 crore, was approved more than two years ago, finalisation has been delayed due to technical and commercial negotiations.
The second deal, part of Project-75 India (P75-I), involves acquiring six diesel-electric stealth submarines at an estimated cost of ₹65,000 crore. Approved in 2021, this entirely new project aims to strengthen India’s underwater fleet and boost maritime security.
Under the Navy’s Project-75, Mazagon Dock Limited has successfully built six Scorpene-class submarines in collaboration with Naval Group. The next three Scorpene-class submarines will be a follow-on order, while the P75-I stealth submarines mark India’s first indigenous acquisition under the expanded programme.
German shipbuilder ThyssenKrupp Marine Systems (TKMS) is collaborating with Mazagon Dock Limited on the P75-I stealth submarine programme. Cost negotiations for P75-I could take six to nine months, whereas commercial discussions for the Scorpene follow-on order are almost finalised.
The Scorpene deal may be finalised early next year. Deliveries for both projects are expected around six years after the contracts are signed. Expansion of MDL's infrastructure may be required to execute both deals simultaneously.
Alongside the submarine deals, the defence ministry has approved 26 naval variants of Rafale jets from France. An intergovernmental agreement worth ₹64,000 crore was signed in April for deployment of the jets on the Navy’s aircraft carrier INS Vikrant.
