JANUARY, 20269INDIA, IRELAND DEEPEN COOPERATION IN TRADE, EDUCATION, HEALTHCARETOP STORIESAccording to sources close to the talks, Germany and India are about to close the deal on a submarine production agreement worth no less than $8 billion, thus becoming the biggest defense deal in India's history.The deal which is envisaged before the German Chancellor Friedrich Merz's trip to India next week would involve the transfer of technology for submarines production for the first time.India is now operating approximately 12 decommissioned Russian submarines and 6 brand new French-made models. In case the deal gets approved, it is likely that India will subsequently give up its intention of buying 3 more French submarines.The deal will see a partnership between Germany's Thyssenkrupp Marine Systems GmbH and India's state-owned Mazagon Dock Shipbuilders Ltd. for the manufacture of the vessels.Chancellor Merz will see Prime Minister Narendra Modi in Gujarat and then go to Bengaluru to discuss matters with German businesses. The discussions are likely to increase the cooperation in the fields of defense and pharmaceuticals and also to quicken the overall negotiations on free trade agreement between the EU and India. In a few weeks, the Merz will also be going to China with a group of German CEOs.The new submarines will be equipped with air-independent propulsion systems, which will allow them to stay underwater for a longer period than the traditional diesel-electric types. The Navy wants these ships to be part of its strategic positioning in the Indian Ocean as it faces an increase in China's regional activities.The agreement is a sign that India and Germany are getting closer in terms of their defense relations and it also supports India's call for technology transfer and local arms production. Even though India has been a traditional Russian arms client, this collaboration can be seen as a strategic move of India to widen the supplier base.Germany's acceptance to transfer sophisticated submarine technology also indicates that Berlin is keen to help India in its defense modernization and at the same time lessens its dependency on Russian arms. IMR· Germany and India finalizing $8B submarine deal with tech transfer· Submarines will feature air-independent propulsion for stronger naval capability· Deal deepens defense ties and reduces India's reliance on Russian arms
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