India to be global submarine building hub? Germany’s Thyssenkrupp eyes P75I contract, offers to make submarines here

TKMS is competing for a contract to build six diesel-electric submarines for the Indian Navy.

Indian Navy submarines: Naval manufacturing demands have surged due to recent conflicts, presenting India with an opportunity to establish itself as a global hub for submarine and warship construction at competitive costs, according to Germany’s premier maritime firm.
Thyssenkrupp Marine Systems (TKMS), competing for a contract to build six diesel-electric submarines for the Indian Navy, envisions expanding its presence and has proposed creating a collaborative warship construction centre. The company estimates that manufacturing costs in India could be up to 50% lower than alternative locations.
The competition between TKMS-MDL and L&T-Navantia (Spanish company) for the Navy’s conventional submarine contract is intense. The technical oversight committee’s report, a crucial step in selecting the winner, is anticipated before January ends.
“Together with MDL (Mazagaon Dockyards Limited, which is the partner for the submarine contract), there could be a hub for technology, which will generate more orders. This is really an opportunity to go beyond the P75I (the submarine contract), which will generate, of course, more jobs,” TKMS CEO Oliver Burkhard told ET.
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TKMS positions itself as India’s dependable partner for future technological developments, emphasising complete German government backing.
“We want to foster the partnership over this project, (which) will be the entry from a strategic perspective to the (larger) attainable market. It can double and triple within 10 years,” Burkhard explained.
Burkhard highlighted Europe’s current capacity constraints due to increased military system demands following the Russia-Ukraine conflict. He identified Southeast Asia and South America as potential export markets.
Given Germany’s high engineering wages, manufacturing in India could offer substantial cost benefits for both domestic and export orders.
He confirmed that India has been informed about Germany’s proposal for an extensive warship construction hub through various channels.