Germany has agreed to build six submarines for the Indian Navy in a deal worth $5.2 billion. The agreement was reached during a virtual summit between German Chancellor Angela Merkel and Indian Prime Minister Narendra Modi.
The submarines will be built under a joint venture between Germany’s Thyssenkrupp Marine Systems and India’s state-run Mazagon Dock Shipbuilders. The deal also includes the transfer of technology and training of Indian personnel.
The submarines are expected to enhance India’s naval capabilities and strengthen its strategic position in the Indian Ocean region. The project is also expected to create jobs and boost the economy in both countries.
The agreement is part of India’s efforts to modernize its military and strengthen its defense capabilities. India has been rapidly expanding its naval fleet in recent years, with a particular focus on submarines.
Germany has a long history of cooperation with India in the defense sector. In 2000, the two countries signed a defense cooperation agreement, which has led to joint projects in areas such as naval shipbuilding, missile technology, and aviation.
The submarine deal is the latest example of the strong ties between Germany and India. The two countries have a close relationship based on shared values and common interests in areas such as trade, technology, and climate change.
During the virtual summit, Chancellor Merkel and Prime Minister Modi also discussed other areas of cooperation, including renewable energy, artificial intelligence, and cybersecurity. They also discussed the COVID-19 pandemic and the need for global cooperation to tackle the crisis.
The submarine deal has been welcomed by both German and Indian officials, who see it as a major step forward in their strategic partnership. The deal is also seen as a boost for Thyssenkrupp Marine Systems, which has been facing financial difficulties in recent years.
The agreement comes amid growing concerns about China’s expanding naval capabilities in the Indian Ocean region. China has been increasing its naval presence in the region, including through the construction of military bases in countries such as Pakistan and Sri Lanka.
India has been seeking to counter China’s influence in the region by building up its own naval capabilities and strengthening its ties with other countries. The submarine deal with Germany is part of this effort.