German ambassador meets defence secretary ahead of chancellor Merz’s visit
The meeting was held against the backdrop of speculation in diplomatic circles that the two sides could finalise an intergovernmental enabling agreement during Merz’s visit for a ₹70,000-crore deal to supply six stealth submarines to the Indian Navy.
New Delhi German ambassador Philipp Ackermann met defence secretary Rajesh Kumar Singh on Thursday to discuss the co-production of defence equipment ahead of a visit by German Chancellor Friedrich Merz.
The meeting was held against the backdrop of speculation in diplomatic circles that the two sides could finalise an intergovernmental enabling agreement during Merz’s visit for a ₹70,000-crore deal to supply six stealth submarines to the Indian Navy.
Ackermann conveyed new year greetings to the defence secretary on behalf of the German side, and they “discussed a range of bilateral security and defence issues including priority areas for co-development & co-production of defence equipment”, the defence ministry said on social media without giving details.
Merz will be in India during January 12-13 and will meet Prime Minister Narendra Modi in Ahmedabad on Monday. This is Merz’s first visit to Asia.
Last year, Mazagon Dock Shipbuilders Limited (MDL) and German yard Thyssenkrupp Marine Systems (TKMS) emerged as the frontrunner for the ₹70,000-crore project (P-75I) to build six advanced submarines in India to sharpen the navy’s underwater capabilities, edging out their only competitor the Larsen & Toubro-Navantia combine that did meet the navy’s requirements. It is one of one of the biggest “Make in India” defence production initiatives in recent years.
TKMS is engaged in commercial negotiations with the Indian side for an agreement on the pricing of the submarines, and the intergovernmental agreement is required to shepherd the other pact, people familiar with the matter said on condition of anonymity.
The agreement dovetails with the German side’s efforts to build a stronger defence partnership with India and also to build up the domestic defence industry as part of Europe’s rearmament initiative due to the increasing unreliability of the US as a security partner, the people said.
TKMS has said it has plans to make India a global hub for building submarines and warships in view of a rise in demand for naval platforms. TKMS CEO Oliver Burkhard told PTI recently that if his firm seals the mega deal, it could be the beginning of a long-standing partnership with India as there is bipartisan support in Germany to ramp up overall defence ties. Burkhard also said construction of submarines in India will be an attractive proposition as the cost will be on the lower side, compared to any other country in Europe.
The submarines are expected to have significant indigenous content. The first submarine under P-75I must have a minimum of 45% indigenisation, with the local content going up to 60% in the sixth.
The visit comes at a time when the project is at the cost negotiation stage. The first submarine under P-75I will be delivered to the navy seven years after the contract is signed, with the rest at the rate of one per year.
