India-Germany Defence Ties: A Structural Upgrade on the Horizon
Business
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Moneycontrol•15-01-2026, 15:08
India-Germany Defence Ties: A Structural Upgrade on the Horizon
- •India and Germany are poised for a significant upgrade in defence collaboration, marked by Chancellor Friedrich Merz’s recent visit and 19 signed agreements.
- •Historically weak defence ties are strengthening due to Germany's 'Zeitenwende' policy shift and Indo-Pacific reorientation, moving beyond mere arms sales to industrial collaboration.
- •The Project-75 submarine deal, valued at $8 billion, is central to this new relationship, involving ThyssenKrupp Marine Systems and Mazagon Dock Shipbuilders Ltd to build six diesel-electric submarines with Air Independent Propulsion technology.
- •Germany has eased export controls, removing 110 out of 130 defence items from its restricted list for India, facilitating access to previously banned equipment like MP5 submachine guns.
- •Challenges remain, including German export control rigidities and the absence of a flagship platform, but the partnership offers advantages like diversifying from Russian sources and supporting indigenous content goals.
Why It Matters: India and Germany are significantly enhancing defence cooperation, moving towards co-production and technology transfer.
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