India Approves ₹80,000 Crore Submarine Programme Amid Rising Maritime Threats

NEW DELHI — The Ministry of Defence has cleared an ₹80,000 crore budget for Project‑75(I), a programme to acquire six advanced conventional submarines equipped with air‑independent propulsion. The approval, reported on 4 October 2026, brings the plan closer to finalisation and signals a major push to modernise India’s under‑sea fleet.

Strategic backdrop

Project‑75(I) follows the earlier Project‑75, which delivered six Scorpene‑class submarines built under a technology‑transfer agreement with France’s Naval Group. The new tranche is intended to replace ageing vessels and to counter a perceived increase in submarine activity by regional powers in the Indian Ocean Region. Defence officials have linked the procurement to the need for sustained under‑sea deterrence, especially as Chinese and Pakistani naval assets expand their presence in the area.

Programme scope and cost

The ₹80,000 crore allocation covers design, construction, testing and delivery of six submarines over a 10‑year period. The budget also includes provisions for indigenous shipyard upgrades, domestic component development and offset obligations aimed at bolstering India’s defence industrial base. The Ministry of Defence has indicated that the submarines will feature advanced sonar suites, stealth hulls and integrated combat management systems, though specific technical specifications remain classified.

Industrial participation

Domestic shipyards are expected to play a central role. The Ministry has shortlisted three Indian firms—Mazagon Dock Shipbuilders Ltd (MDL), L&T Shipbuilding Ltd and Hindustan Shipyard Ltd—to undertake construction under a public‑private partnership model. The selection process, still under review, is designed to maximise indigenous content and create a sustainable supply chain for future naval platforms.

Additional Scorpene considerations

On 4 October 2026, Business Today reported that the defence establishment is also weighing the purchase of three more Scorpene‑class submarines as part of a broader fleet‑expansion strategy. The additional units would be procured under the same budget envelope, subject to final approval by the Cabinet Committee on Security. Sources familiar with the deliberations said the move would help achieve a balanced mix of newer and existing platforms while allowing shipyards to refine construction processes.

Funding and approval process

The ₹80,000 crore figure was disclosed in a ZoomNews report dated 4 October 2026, which cited a Ministry of Defence briefing to the Cabinet Committee on Security. The briefing outlined the financial outlay, projected timelines and the expected contribution of domestic industry. The same briefing was referenced in a Government Economic Times article published on 5 October 2026, confirming that the proposal had moved to the final approval stage.

Timeline and delivery

According to the Ministry’s schedule, the first submarine is slated for launch by 2029, with the final unit expected to be delivered by 2034. The programme includes a phased hand‑over of technology to Indian shipyards, enabling them to build subsequent vessels with increasing levels of indigenous content. The Defence Production Policy, revised in 2025, mandates that at least 60 percent of critical components be sourced domestically, a target that the Project‑75(I) contracts are designed to meet.

Implications for the defence sector

Analysts note that the sizeable investment will generate a ripple effect across the maritime defence ecosystem. Shipbuilding firms anticipate a surge in orders for hull sections, propulsion systems and combat electronics. The programme is also expected to create thousands of skilled jobs, particularly in coastal states where the participating shipyards are located.

Regional security context

India’s under‑sea capabilities have become a focal point of its broader maritime strategy, which seeks to ensure freedom of navigation and protect sea‑line communications. The expansion of the submarine fleet aligns with the Indian Navy’s 2030 force‑structure plan, which calls for a balanced mix of surface combatants, submarines and unmanned platforms.

Next steps

Following the Cabinet Committee’s endorsement, the Ministry of Defence will issue detailed tender documents to the shortlisted shipyards. Procurement officials will also initiate negotiations with foreign design partners for technology transfer and training. The final contract awards are expected by early 2027, pending clearance from the Ministry of Finance and the Comptroller and Auditor General.