Germany to compete with Spain for submarine contract, plans back-to-back visit to India

Spanish Prime Minister Pedro Sánchez and German Chancellor Olaf Scholz will make two important back-to-back trips to India with the goal of strengthening bilateral cooperation, with a special emphasis on defense later this month.

The main focus of these visits is India's eagerly awaited decision on Project 75(I), a large-scale project that would build six cutting-edge submarines with air-independent propulsion (AIP) systems.

Project 75(I) aims to enhance India's naval capabilities by developing six advanced submarines, featuring cutting-edge technology, stealth capabilities, and indigenous design, boosting maritime security and self-reliance in defense.

Germany and Spain will try hard for this crucial defense contract, which has the potential to strengthen strategic relations with India.

On Oct 25, Chancellor Olaf Scholz and a group led by Boris Pistorius, Germany's defense minister, will begin their tour to New Delhi.

Scholz and Indian Prime Minister Narendra Modi's discussions are anticipated to focus mostly on defense cooperation, specifically Germany's bid for the P75(I) project.

For this massive submarine contract, ThyssenKrupp Marine Systems (TKMS) of Germany collaborated with Mazagon Dock Shipbuilders Ltd. (MDL), a state-run company in India.

After the German government urged its involvement, TKMS, which had been hesitant at first because of its large order books and reservations about the Indian procurement process, changed its mind. Given the geopolitical significance of the submarine project, the German company is keen to negotiate a government-to-government agreement with India.

The smaller size of the AIP system, which was made for Type 214 submarines, was cited as a drawback because the Indian Navy needs a larger submarine platform, even though TKMS showed it during the Indian Navy's field evaluation trial (FET).

TKMS is still hopeful, though, considering Germany's solid industrial know-how and longstanding defense connections with India.

Scholz's visit will probably include more general topics like digital cooperation, green technologies, and renewable energy in addition to the submarine project.

In keeping with India's increasing emphasis on indigenization and strategic autonomy in the defense sector, both parties seek to advance their defense and technology cooperation.

Pedro Sánchez, the prime minister of Spain, is scheduled to arrive on Oct 27 for three days. His visit highlights the growing significance of India-Spain relations and is going to be the first official visit to India by a Spanish leader in the past 18 years.

Sánchez will be accompanied by his spouse, Ms. Begona Gomez, and a high-level delegation.

Sánchez's visit will focus heavily on defense cooperation because L&T and Spanish company Navantia are competing for the same P75(I) submarine project.

During the FET, Navantia demonstrated their AIP system, which has undergone extensive testing and received Spanish Navy approval. The first submarine to be outfitted with the system is expected to be in service by 2026.

Similar to Germany, Spain sees the project as a critical chance to strengthen strategic defense ties with India and is looking for a government-to-government agreement.

Sánchez's visit will concentrate on enhancing collaboration in areas including industry, trade, and aviation in addition to defense.

The opening of the C295 Final Assembly Line Plant in Vadodara, a major "Make in India" project in the aviation industry, will be one of the main events.

This initiative, which is a partnership between Airbus Spain and Tata Advanced Systems, represents Spain's dedication to helping India achieve self-reliance in defense manufacturing.

Beyond defense, a wide range of sectors are on the agenda for stronger collaboration during Sánchez's visit.

India and Spain are expected to discuss trade and investment prospects, information technology, infrastructure, and renewable energy during meetings.

The discussions would probably focus on collaborative ventures and technology exchanges in India's fast-expanding green energy industry, which Spain has been eager to enter.

In addition, the Spanish leader will travel to Mumbai, where he will meet with representatives of the film industry, trade and industry executives, and think tanks.

Spain's desire to deepen its cultural and economic connections with India's commercial hub is highlighted by this visit to Mumbai.

It seems likely that a number of Memorandums of Understanding (MoUs) will be inked, strengthening collaboration between industries like biotech, agro-tech, and pharmaceuticals.