New Delhi: Germany has granted India a special status to expedite approvals for military purchases, according to German Ambassador Philipp Ackermann, as reported by The Hindu. The Ambassador also noted that the German seller is awaiting India’s final decision regarding the P-75I submarine deal. This multi-billion dollar agreement will be a key topic during German Chancellor Olaf Scholz’s visit to India this week, as well as when Spanish Prime Minister Pedro Sanchez arrives over the weekend.
India is planning to diversify its military hardware sources since Russia, its largest supplier, became embroiled in sanctions following its invasion of Ukraine in 2022.
Germany’s TKMS and Spain’s Navantia vying for submarine contract
Germany’s TKMS (Thyssenkrupp Marine Systems) and Spain’s Navantia are the two competitors vying to supply six advanced conventional submarines to the Indian Navy under Project-75I, a deal valued at over Rs 43,000 crore. After completing field evaluation trials, the bids are currently under review for technical compliance.
“The German defence industry is largely privatised. It’s predominantly a private sector matter, but we are committed to facilitating these transactions. If the Indian armed forces wish to purchase from German companies, the German Cabinet has now issued a focus paper that views these acquisitions very favourably, which will significantly reduce approval times,” Ambassador Ackermann said at a press briefing ahead of the Chancellor’s visit.
Previously, while around 95% of India’s military purchase requests were approved, the process often took time. With the new special status, this will now be expedited. Ackermann also noted that Indian officials previously came to Germany with extensive request lists, but these have now been fulfilled.
Strong support from German government
On the P-75I submarine deal, the German government has expressed strong support, but the final decision lies with India. “A decision in principle is needed before proceeding,” he said, describing it as a significant commitment given the financial scale involved.
According to The Hindu, an Indian Navy team conducted field trials at the TKMS shipyard in March, while Navantia’s offer was assessed at the end of June. Defence officials have confirmed that staff are still evaluating the results.
India is seeking to acquire six new submarines to counter China’s growing naval influence in the Indo-Pacific region, with Thyssenkrupp AG bidding for the contract worth 400 billion rupees ($4.8 billion). Meanwhile, Spanish Prime Minister Pedro Sanchez, set to visit India later this month, is expected to open an Airbus SE facility in Gujarat, and Navantia is also competing for the same contract.
