Thu, Feb 20, 2025

Germany-India Submarine Deal: Implications for Russia Explored

Technology
Sarah   J

Sarah J

Posted on Thu, Feb 20, 2025

3 min read

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Germany’s Thyssenkrupp Marine Systems (TKMS) has secured a multi-billion-dollar contract to build six advanced conventional submarines for the Indian Navy in partnership with India’s state-owned Mazagon Dock Shipbuilders (MDS), a development announced as of February 4, 2025, per a *Deutsche Welle* article. This deal, part of India’s Project-75I, marks a significant step in Indo-German defense ties, but its broader impact on India’s long-standing reliance on Russian arms remains under scrutiny. Here are the key takeaways from the report.


Details of the Deal

The agreement, approved after TKMS and MDS outbid Spain’s Navantia (partnered with Larsen & Toubro), involves constructing six diesel-electric submarines equipped with air-independent propulsion (AIP) technology for enhanced stealth. TKMS will handle engineering and design, while MDS builds the submarines in India, aligning with Prime Minister Narendra Modi’s “Make in India” initiative. This builds on a historical partnership—TKMS’s predecessor, Howaldtswerke-Deutsche Werft, supplied four submarines to India in the 1980s. The deal aims to bolster India’s naval capabilities amid China’s growing presence in the Indian Ocean.


India’s Shifting Arms Landscape

India remains the world’s largest arms importer, accounting for nearly 10% of global imports from 2019–2023, with Russia historically its dominant supplier. However, Russia’s share has declined—from 69% in 2012–2016 to 46% in 2017–2021, and 36% in 2019–2023—due to sanctions, the Ukraine war, and payment disruptions in rupees. The TKMS deal follows other diversification efforts, like India’s Scorpene-class submarine project with France, and reflects a gradual pivot toward Western partners. In 2024, India ranked as Germany’s third-largest arms export market, with €153.75 million ($160 million) in sales in the first half alone.


Impact on Russia: Limited but Notable

Experts quoted in the article suggest the deal doesn’t signal an immediate end to India’s defense dependence on Russia. Sushant Singh, a senior fellow at Yale, called it a continuation of “limited collaborations” rather than a trend, noting its roots in a long-delayed project critical to replacing India’s aging fleet. However, Retired Lt. Gen. SL Narasimhan argued that European partnerships, including Germany’s, will grow when costs and requirements align, hinting at a slow erosion of Russia’s dominance. Russia retains strategic heft, supplying 60% of India’s submarine fleet (e.g., Kilo-class subs like INS Sindhurakshak), but delays—like the postponed 2025 delivery of a nuclear submarine lease—underscore vulnerabilities.


Broader Strategic Context

The deal aligns with Germany’s post-Ukraine war “Zeitenwende” policy shift, easing arms export restrictions to strategic partners like India. It’s also a response to China’s maritime assertiveness, enhancing India’s deterrence in South Asia. Modi’s push for domestic manufacturing further reduces reliance on imports, though Russia’s role as a key partner persists, evidenced by ongoing oil imports despite Western sanctions. Analysts see this as a pragmatic diversification, not a rupture, with India balancing ties across Russia, the US, and Europe.


The Germany-India submarine deal, formalized by February 4, 2025, strengthens bilateral ties and supports India’s naval modernization, but its impact on Russia is nuanced. While it chips away at Moscow’s arms monopoly, India’s deep military and economic links with Russia suggest a gradual shift rather than a decisive break. As India emerges as a maritime power, such collaborations may reshape its defense ecosystem, though Russia’s influence endures for now.

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