Germany has granted India a special status to accelerate approvals for military purchases, aiming to fast-track deals, according to German Ambassador Philipp Ackermann. A significant deal, the multi-billion-dollar P-75I submarine project, is currently under review, with Germany’s Thyssenkrupp Marine Systems (TKMS) and Spain’s Navantia competing to supply six advanced submarines to the Indian Navy. The deal, valued at over $5.16 billion, is set to top the agenda during German Chancellor Olaf Scholz’s visit to India this week, with Spanish Prime Minister Pedro Sanchez also scheduled for discussions.
The German defense industry, largely privatized, is fully committed to facilitating such transactions. While 95% of India’s previous defense requests have been approved, the process will now be expedited due to India’s special status, the envoy added.
On the P-75I submarine deal, Ackermann noted that the German government is ready to engage formally, but an official decision from India is required before proceeding, given the significant investment involved. TKMS has proposed its Class 214 submarine design, partnered with Mazagon Dock Shipbuilders, while Navantia, in collaboration with Larsen & Toubro, has offered a submarine based on its new S80 class.
A crucial aspect of the P-75I project is the inclusion of an operationally proven Air Independent Propulsion (AIP) system, which extends a submarine’s endurance. Germany has demonstrated its AIP, although it slightly falls short of required endurance. Navantia, on the other hand, has shown its AIP capability but has yet to demonstrate its full performance while submerged.
Germany has also simplified its licensing processes for military equipment sales to India, ensuring faster approvals for future deals, including a license for small arms.