Mazagon Dock Shipbuilders shares rise 3% as talks advance on $8 billion Indo-German submarine deal

Shares of Mazagon Dock Shipbuilders Ltd (MDL) rose 3% to Rs 2,558 on BSE on Friday (January 9) as India and Germany reportedly move closer to finalising a submarine manufacturing agreement worth at least $8 billion.

The proposed deal is between Germany’s Thyssenkrupp Marine Systems and India’s state-run MDL, which could become the largest defence agreement for India to date, according to a Bloomberg report cited by ETNow.

A key highlight of the deal is the provision for the transfer of technology, which would allow submarines to be built in India using German expertise for the first time.


The project is expected to adopt a partnership model with domestic production, marking a significant shift in India’s defence procurement strategy. The arrangement aligns with India’s push to strengthen indigenous manufacturing through collaboration with foreign partners.

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Under the Ministry of Defence, Mazagon Dock Shipbuilders is India’s premier warship and submarine builder, having played a pivotal role in constructing naval vessels for the Indian Navy.

According to the reported agreement, the new submarines are expected to be equipped with air-independent propulsion (AIP) systems, enabling them to stay submerged for longer durations compared to traditional diesel-electric submarines.

This capability would significantly enhance India’s maritime surveillance, particularly in the Indian Ocean region.

The deal is also in line with the government’s broader defence policy, which encourages foreign manufacturers to localise production and share critical technologies. In 2020, India restricted imports of several defence platforms to boost domestic manufacturing, underscoring the strategic importance of such partnerships.

The deal also aligns with India’s broader defence policy that encourages foreign manufacturers to localise production and share critical technologies. In 2020, the government had restricted the import of several defence platforms to promote domestic manufacturing, further reinforcing the strategic importance of partnerships like this one.

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