India Aims to Finalize ₹1 Lakh Crore Submarine Deals by Mid-2026
India is advancing two major submarine procurement deals worth over ₹1 lakh crore, expected to be finalized by mid-2026. The first deal, valued at ₹36,000 crore, involves three Scorpene submarines in collaboration with Mazagon Dock Shipbuilders and French Naval Group. The second, Project 75 India, worth ₹65,000 crore, aims to acquire six diesel-electric stealth submarines, with ThyssenKrupp Marine Systems partnering with Mazagon Dock Shipbuilders. These deals signify India's commitment to strengthening its naval capabilities amid regional competition, particularly from China. The projects also align with India's push for self-reliance in defense manufacturing.

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India is making significant strides in bolstering its naval capabilities, with two major submarine procurement deals worth over ₹1 lakh crore expected to reach fruition by mid-2026. These deals underscore the nation's commitment to strengthening its underwater fleet amid growing regional naval competition.
Scorpene Submarine Deal
The first deal involves the acquisition of three Scorpene submarines, valued at ₹36,000.00 crore. This project is a collaborative effort between Mazagon Dock Shipbuilders , an Indian shipbuilder, and the French Naval Group. Despite receiving clearance from the defense ministry over two years ago, the deal has faced delays in technical and commercial negotiations. However, recent reports suggest that commercial negotiations are nearing completion, signaling progress in this crucial naval expansion.
Project 75 India: Stealth Submarines
The second and larger project, known as Project 75 India, involves the procurement of six diesel-electric stealth submarines at an estimated cost of ₹65,000.00 crore. This initiative, which received initial clearance in 2021, has seen German shipbuilder ThyssenKrupp Marine Systems partner with Mazagon Dock Shipbuilders. Cost negotiations for this ambitious project are set to commence soon and are expected to span six to nine months.
Timeline and Strategic Implications
Both submarine deals are anticipated to be finalized by mid-2026, marking a significant milestone in India's naval modernization efforts. Once the contracts are signed, the delivery of submarines under both projects is expected to begin approximately six years later.
This substantial investment in submarine technology comes as India seeks to enhance its underwater capabilities, particularly in light of China's expanding naval presence in the region. The addition of these advanced submarines will significantly boost the Indian Navy's strategic deterrence and operational capabilities in the Indian Ocean and beyond.
Economic and Industrial Impact
The combined value of these deals, exceeding ₹1 lakh crore, represents a major investment in India's defense sector. Moreover, the involvement of domestic shipyards like Mazagon Dock Shipbuilders in these projects aligns with India's push for self-reliance in defense manufacturing, potentially spurring technological advancements and creating high-skilled job opportunities in the naval defense industry.
As negotiations progress and timelines become clearer, these submarine deals are poised to play a crucial role in shaping India's naval strategy and defense capabilities for decades to come.
Historical Stock Returns for Mazagon Dock Shipbuilders
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.95% | -3.60% | -4.31% | +22.15% | +22.83% | +2,927.56% |