Indo-German Collaboration: A Game-Changer for Naval Vessel Production

German naval shipbuilder ThyssenKrupp Marine Systems (TKMS) has set its sights on India as a strategic partner for manufacturing naval vessels, including submarines, citing the country’s significant cost advantage and its potential to emerge as a global hub for naval equipment. This bold vision underscores the strategic importance of Indo-German collaboration in bolstering defence capabilities and countering China’s growing influence in the Indo-Pacific.

Why India is an Ideal Naval Manufacturing Hub

According to TKMS CEO Oliver Burkhard, India offers unparalleled cost advantages compared to Europe. The estimated cost of manufacturing submarines in India is less than half of that in Germany, primarily due to lower wage levels and operational expenses. This makes India an attractive option for producing defence equipment catering to price-sensitive buyers in Southeast Asia, South America, and beyond.

“The demand for naval assets has surged globally following the Russia-Ukraine conflict and other geopolitical tensions. India’s manufacturing ecosystem presents a unique opportunity for TKMS to address this growing demand efficiently,” Burkhard said.

Strategic Collaboration: TKMS and Mazagon Dock Shipbuilders

TKMS has partnered with India’s state-owned Mazagon Dock Shipbuilders (MDL) to compete for the Indian Navy’s Project 75 (India) or P751, which involves building six advanced diesel-electric submarines. This project has been delayed but is now in its advanced stages, with key decisions expected soon.

TKMS is pitching this partnership not just as a project-specific initiative but as a long-term strategic move to establish India as a global manufacturing and export hub for naval vessels. The German company has communicated this vision to the Indian government, presenting a compelling case for collaboration.

Global Demand and Geopolitical Significance

The rise in defence spending across Europe and other regions, driven by the Russia-Ukraine war, has led to capacity constraints in traditional manufacturing hubs like Germany. With Europe’s facilities operating at full capacity, India is emerging as a viable alternative.

Khalil Rahman, TKMS India CEO, emphasized the geostrategic implications of this collaboration. “China’s aggressive push to sell naval equipment at ‘friendship prices’ to developing countries poses challenges for both India and Germany. By leveraging India’s cost advantages and Germany’s technical expertise, we can offer competitive alternatives that align with global strategic interests,” Rahman said.

Expanding Horizons Beyond Submarines

While submarines remain the immediate focus, TKMS envisions expanding its footprint in India to include surface boats, autonomous marine vehicles, and other advanced naval assets. Burkhard also hinted at the possibility of collaborating with private Indian firms, although MDL remains the preferred partner.

Also Read:Sangeeta Krishnasamy: From Law Graduate to Award-Winning Actress