New Delhi: India is on the brink of executing its largest-ever defence contract, a game-changing ₹1.06 lakh crore mega deal aimed at catapulting the Indian Navy into a global undersea power. This historic agreement, part of the long-awaited Project-75I, represents a strategic leap forward in India’s maritime capability and indigenous defence manufacturing, especially at a time of growing tensions in the Indo-Pacific.
As China rapidly expands its naval dominance and Pakistan strengthens its undersea warfare capabilities with Chinese backing, India’s maritime strategy is entering a bold new phase. The Defence Ministry is expected to award two major submarine-building contracts to Mazagon Dock Shipbuilders Limited (MDL) by the end of the next financial year, bolstering India’s deterrence and strike capability beneath the seas.
India’s current submarine fleet comprises 16 conventional submarines, recently enhanced with the induction of INS Vagsheer, part of the original Project-75, which delivered six French-designed Kalvari-class Scorpene submarines. These vessels now form the backbone of India’s undersea combat fleet.
But officials believe India needs to scale up quickly to counter regional threats. In comparison, China’s navy commands over 355 warships and submarines, making it the world’s largest. Pakistan, too, is ramping up its underwater fleet, supported by Beijing.
Under Project-75I, the government is expected to finalise a ₹70,000 crore contract for six next-generation submarines equipped with advanced stealth, propulsion, and endurance capabilities.
MDL will collaborate with ThyssenKrupp Marine Systems (TKMS) of Germany to construct six cutting-edge submarines based on the proven HDW Class 214 platform. These submarines will be equipped with Air Independent Propulsion (AIP) systems, allowing them to stay submerged for up to two weeks — a critical stealth advantage in modern naval warfare.
Each submarine will measure 72 metres in length, displace 2,000 tonnes, and be equipped with eight weapon tubes, operated by a 27-member crew. The AIP system, based on hydrogen-oxygen fuel cell technology, will enable silent operations with minimal acoustic detection.
A vital feature of the deal is the phased localisation clause — starting with 45% indigenous content in the first submarine, increasing to 60% by the sixth. This includes full technology transfer, empowering India to independently manufacture future generations of submarines. The first submarine is expected seven years after signing, with subsequent deliveries every year.
In a parallel move, the government is set to approve an additional ₹36,000 crore contract to build three upgraded Scorpene-class submarines, featuring enhanced indigenous content and capabilities. These submarines, based on the proven Kalvari class but modernised for longer deployments and advanced combat systems, will incorporate 60% Indian components.
This contract will also be executed by MDL, which will deliver the first vessel in six years, with the remaining two delivered annually. The design will closely mirror Scorpene variants already supplied to the Brazilian Navy, marking a significant upgrade in India’s naval hardware.
India’s push for self-reliance in defence is evident with the DRDO’s successful development of an indigenous AIP system. In December 2024, the government inked a ₹1,990 crore deal with MDL to retrofit this AIP system into the existing Kalvari-class submarines, starting with INS Kalvari during its major refit scheduled for September 2025.
Additionally, India signed a separate ₹877 crore agreement with France’s Naval Group to integrate electronic heavyweight torpedoes into Kalvari-class submarines, significantly enhancing their undersea lethality and strike precision.
The massive scale of these submarine projects is expected to have a cascading economic impact. The AIP project alone is projected to generate over three lakh man-days of employment. MDL has partnered with more than 50 Indian companies, and over 70 Indian engineers are being trained in advanced submarine technology by the Indian arm of the French Naval Group.
MDL’s state-of-the-art shipbuilding infrastructure is capable of constructing 11 submarines and 10 destroyers simultaneously. Having already successfully delivered all six submarines under the previous Project-75, MDL is positioned as a key pillar in India’s indigenous defence ecosystem.
With 130+ active warships and 61 more under construction, India is moving aggressively toward achieving a 175-ship strong Navy by 2035. These new submarine programs will be central to achieving that goal, giving India a credible edge in undersea deterrence and power projection.
In the face of expanding Chinese activity in the Indian Ocean Region (IOR) and growing Pakistani naval cooperation with Beijing, this initiative is not just about bolstering numbers—it is a strategic necessity. By building cutting-edge submarines at home with global partners, India is asserting its status as a regional maritime power and fortifying its presence in Asia-Pacific waters.
The ₹1.06 lakh crore commitment marks a pivotal moment in India’s naval and industrial history, signalling that the country is ready to defend its interests, not just on land or in the skies, but beneath the surface of the world’s most critical waters.
