In a significant move to tap into India’s potential as a center for maritime defense production, Thyssenkrupp Marine Systems (TKMS), Germany’s leading maritime company, is advocating for India to emerge as a global hub for submarine and warship manufacturing. This initiative is particularly timely, given the increasing demand for naval assets that has been fueled by escalating geopolitical tensions worldwide.
Currently, TKMS is competing to secure a contract to manufacture six advanced diesel-electric submarines under India’s P75I Navy programme. The company has plans to collaborate with Mazagon Dock Shipbuilders Limited (MDL) to establish a state-of-the-art joint warship building facility. According to TKMS CEO Oliver Burkhard, the strategic production of naval platforms in India could reduce costs by as much as 50%. This cost efficiency could position India as a magnet for both domestic naval orders and international exports.
Burkhard emphasized the transformative potential of this partnership with MDL. “Together with MDL, there could be a hub for technology, which will generate more orders,” he stated. He painted a vision of a project that extends beyond the sole P75I contract, foreseeing the creation of jobs and the enhancement of India’s technological capabilities in the maritime domain.
However, TKMS is not without serious competition for the submarine contract. The L&T-Navantia consortium, a partnership between Indian multinational Larsen & Toubro and the Spanish shipbuilder Navantia, is also in the running, making the bidding process highly competitive. The next crucial step in this selection process is the expected finalization of the technical oversight committee report by the end of January, which will determine the direction the Indian Navy will take in selecting a supplier.
In his remarks, Burkhard positioned TKMS as a vital strategic partner for India in the development of future naval technologies. He highlighted the backing of the German government for this project, noting its significance as an entry point into a much larger market. “Within 10 years, the market potential could double or even triple,” he observed, indicating strong confidence in the future of defense manufacturing partnerships in the region.
Adding to this perspective, Burkhard pointed out that Europe is currently facing capacity constraints due to an upsurge in demand for military systems, a situation magnified by the ongoing conflict between Russia and Ukraine. He underscored the attractiveness of India as an exporter of naval platforms, particularly to Southeast Asia and South America, given the lower production costs available compared to Germany, where high engineering wages present a challenge.
The TKMS initiative aligns with India’s broader aspirations to bolster its defense manufacturing capabilities and establish itself as a key player in the global defense sector, particularly within the naval sphere. The developments in this domain are being closely watched, as they could have significant implications for India’s defense strategy and its position on the global maritime stage.
