News Brief
Vansh Gupta
Dec 13, 2024, 01:02 PM | Updated 01:02 PM IST
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Germany’s leading maritime company, Thyssenkrupp Marine Systems (TKMS), has highlighted India’s potential to become a global hub for submarine and warship production, capitalising on the growing demand for naval assets driven by recent geopolitical conflicts.
TKMS, currently bidding to manufacture six advanced diesel-electric submarines under India’s P75I Navy programme, envisions establishing a joint warship building hub in partnership with Mazagon Dock Shipbuilders Limited (MDL).
According to TKMS CEO Oliver Burkhard, producing naval platforms in India could lower costs by up to 50 per cent, making the country an attractive destination for both domestic orders and exports.
"Together with MDL, there could be a hub for technology, which will generate more orders. This is really an opportunity to go beyond the P75I project, creating more jobs and enhancing technological capabilities," Burkhard stated.
The TKMS-MDL consortium faces stiff competition from L&T-Navantia, a Spanish collaboration, for the submarine contract. The next milestone—finalization of the technical oversight committee report—is expected by the end of January, which will bring the Navy closer to selecting a supplier
TKMS is positioning itself as a strategic partner for India in developing future technologies, emphasising its backing from the German government.
"This project is a strategic entry into a larger attainable market. Within 10 years, the market potential could double or even triple," Burkhard noted.
Burkhard also pointed to Europe’s capacity constraints as the demand for military systems surges in the wake of the Russia-Ukraine conflict.
He identified Southeast Asia and South America as promising export markets for naval platforms built in India, citing the country’s lower production costs compared to Germany, where high engineering wages pose a challenge.
Vansh Gupta is an Editorial Associate at Swarajya.