New Delhi: In a key prelude to German Chancellor Friedrich Merz’s upcoming visit to India, German Ambassador Philipp Ackermann met with Defence Secretary Rajesh Kumar Singh on Thursday to discuss bilateral defence cooperation and the co-production of defence equipment. The discussions come amid intense diplomatic speculation that the two countries could finalise an intergovernmental enabling agreement during Merz’s visit, facilitating a ₹70,000-crore deal to supply six stealth submarines to the Indian Navy.

According to the Ministry of Defence, Ackermann conveyed New Year greetings to the defence secretary and engaged in detailed discussions on “a range of bilateral security and defence issues, including priority areas for co-development and co-production of defence equipment,” though specific details were not disclosed.

Chancellor Merz is scheduled to visit India from January 12 to 13, meeting Prime Minister Narendra Modi in Ahmedabad on Monday. This will be Merz’s first visit to Asia, and defence cooperation is expected to feature prominently on the agenda.

The proposed submarine deal, part of the Project-75I (P-75I) initiative, is one of the largest defence manufacturing collaborations under the “Make in India” programme in recent years. Last year, Mazagon Dock Shipbuilders Limited (MDL) and German shipyard Thyssenkrupp Marine Systems (TKMS) emerged as the frontrunners for the ₹70,000-crore project to build six advanced submarines in India. They surpassed their closest competitor, the Larsen & Toubro-Navantia consortium, which failed to meet the Indian Navy’s specifications.

The P-75I project aims to significantly enhance the Indian Navy’s underwater capabilities while fostering domestic defence manufacturing. TKMS is currently engaged in commercial negotiations with the Indian side regarding the pricing of the submarines. Sources familiar with the matter noted that an intergovernmental agreement (IGA) is required to formalize the overarching framework, enabling the subsequent commercial contracts to proceed.

The deal aligns with Germany’s broader strategic goals of strengthening defence ties with India while expanding domestic defence production capabilities. Diplomatic sources noted that Europe is increasingly seeking to rearm and diversify security partnerships, especially in light of uncertainties surrounding the United States as a reliable security partner. For Germany, collaboration with India also presents an opportunity to establish long-term defence industrial links in Asia.

TKMS has publicly expressed its intention to position India as a global hub for submarine and warship construction, citing rising demand for naval platforms in the region. CEO Oliver Burkhard recently told PTI that if the P-75I deal is finalized, it could mark the beginning of a long-standing Indo-German defence partnership, supported by bipartisan consensus in Germany. Burkhard also highlighted that building submarines in India would be cost-competitive, offering substantial savings compared to construction in European facilities.

A key feature of the P-75I submarines is indigenous content, which will increase progressively across the six vessels. The first submarine is required to have at least 45% local content, rising to 60% for the sixth submarine, ensuring significant involvement of Indian industry in construction, supply chains, and associated technologies.

The delivery schedule for the submarines has been structured to allow for phased induction into the Indian Navy. The first submarine is expected to be delivered seven years after contract signing, with subsequent submarines being delivered at a rate of one per year. This timeline reflects both the complexity of the submarines and the focus on progressively increasing indigenization in manufacturing.

The German ambassador’s meeting with Defence Secretary Singh is widely viewed as preparatory groundwork for Chancellor Merz’s visit. Diplomatic circles suggest that finalizing the intergovernmental enabling agreement during Merz’s visit would remove procedural hurdles, allowing commercial negotiations and implementation to proceed smoothly.

Observers note that the P-75I deal represents not only a significant military procurement for India but also a strategic partnership milestone for Germany in Asia. It is expected to enhance bilateral defence cooperation, foster technology transfer, and strengthen India’s domestic defence industrial base. The project is also likely to boost local employment and build technical expertise in advanced submarine technologies.

In conclusion, the Indo-German defence dialogue ahead of Chancellor Merz’s visit signals a deepening of strategic ties, with the P-75I submarine project at the center. The outcome of the upcoming discussions and agreements is expected to have long-term implications for India’s naval capabilities, indigenous defence production, and Indo-European defence collaboration.