Germany and India are finalising a submarine manufacturing agreement worth at least $8 billion, potentially the biggest defence deal New Delhi has ever signed, according to a Bloomberg report. The agreement, being negotiated ahead of German Chancellor Friedrich Merz’s visit to India next week, would for the first time involve the transfer of submarine technology to India, the report said. Should the German deal go through, Delhi would abandon plans to buy three additional French submarines, Bloomberg’s sources said, reshaping its long-term naval procurement strategy. India has for years pushed foreign arms makers to manufacture locally and share technology, part of a broader “Make in India” drive. Berlin’s willingness to transfer sensitive submarine technology is also seen as a move to reduce India’s long-standing dependence on Russian weaponry, the report said.

Source: The Telegraph January 08, 2026 14:52 UTC