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India is betting big on state-owned shipyards to ramp up submarine production. The country aims to enhance its naval capabilities in response to the escalating security challenges in the Indo-Pacific region.
New Delhi: India is betting big on state-owned shipyards to ramp up submarine production. The country aims to enhance its naval capabilities in response to the escalating security challenges in the Indo-Pacific region. Mazagon Dock Shipbuilders Limited (MDL) and Hindustan Shipyard Limited (HSL), two public-sector shipbuilders with decades of naval experience, have signed a cooperation agreement that could considerably hasten the country’s submarine-building timeline.
The signing of the memorandum of understanding (MoU) comes as India has major underwater defence programs for modernising and expanding its submarine fleet, including Project 75(I) and Project 76, in the pipeline. MDL’s Proven Expertise MDL, based in Mumbai, has long been the cornerstone of India’s conventional submarine manufacturing.
The company constructed the German-designed Shishumar-class and has been delivering French Scorpene-class submarines under a $3.75 billion agreement with Naval Group. Its high-capacity shipyard, skilled workforce, and partnerships with global defence firms make it a vital part of India’s naval posture. However, relying solely on one yard historically posed limitations.
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Given the urgency of geopolitical challenges in the Indo-Pacific, a single-facility approach was not enough to meet India’s strategic submarine force levels. Strategic Integration of HSL Now, with maritime competition rising and timelines tightening, New Delhi is adding HSL, located on India’s eastern coast in Visakhapatnam, to the mix.
The idea is to create a two-yard submarine ecosystem spanning both coasts, reducing bottlenecks, spreading risk, and accelerating deliveries. HSL, traditionally specialising in refits and overhauls, has serviced submarines since the early 1990s and completed India’s only full mid-life upgrade of a submarine, INS Sindhukirti, in 2015.
The yard recently concluded a scheduled refit of another submarine before the deadline. Currently, the ongoing Normal Refit of INS Sindhukirti has completed two successful surface sorties, with full-power sea trials scheduled by month-end. The company already has a robust infrastructure, a skilled vendor base, and operational proximity to the Indian Navy’s Eastern Command.
With MDL’s proven construction experience and HSL’s emerging capabilities, the partnership is expected to scale submarine production rapidly and effectively. Strategic Historical Context This strategic collaboration aligns closely with a historical vision of India's defence planners. In 1999, the Cabinet Committee on Security (CCS) approved establishing an alternate submarine-building facility specifically on India’s East Coast.
This decision was reinforced in July 2010, when the Defence Acquisition Council (DAC) formally authorised HSL to construct conventional submarines. Benefits of Dual-Yard Approach The MDL–HSL MoU specifically outlines a model of modular construction and parallel workflows, which officials say could streamline production.
The companies aim to leverage each other’s infrastructure, technical knowledge, and logistical networks while maintaining compliance with Indian government policies on indigenisation and public-sector coordination. With both MDL and HSL established as major submarine-building yards, India is no longer reliant on a single facility.
This dual-yard strategy considerably enhances India’s ability to meet the Navy’s numerical and operational submarine requirements, significantly accelerating delivery timelines, improving fleet availability, and ensuring sustained readiness amid regional uncertainties.
India’s strategic requirement for approximately 24–25 submarines to effectively counter the growing Indo-Pacific challenges has historically faced constraints due to a single-shipyard dependency. Establishing two dedicated submarine construction facilities – MDL on the West Coast and HSL on the East Coast – will significantly ease these production limitations, enabling accelerated timelines, improved fleet availability, and sustained naval readiness.
Operational Insights from Operation Sindoor
Recent military operations like Operation Sindoor have further clarified the necessity of expanded submarine capabilities. While the operation primarily involved tri-service coordination with aircraft and missiles, it highlighted growing maritime risks, especially with increased movement and support of naval vessels from nations friendly to Pakistan across both the Arabian Sea and the Bay of Bengal.
Consequently, submarines are increasingly viewed as critical assets for operational maritime surveillance, rapid response, and strategic deterrence – essential components of India’s broader maritime security strategy and Blue Water Navy aspirations. Strategic Pivot and Future Prospects Indian defence analysts say the move reflects a broader strategic pivot. With Chinese naval presence increasing in the Indian Ocean and regional tensions simmering, India is under pressure to speed up its underwater fleet expansion.
The government has increasingly emphasised self-reliance in defence manufacturing and has encouraged state governments, including Andhra Pradesh, home to HSL, to support local industry growth proactively. The goal transcends mere capacity; it is about resilience – being able to produce, repair, and deploy submarines swiftly from both seaboards, particularly during crises. Moreover, the partnership opens potential export opportunities.
Southeast Asian nations are increasingly seeking cost-effective, high-quality alternatives to Western-built submarines, offering India an opportunity to establish itself prominently in the international submarine market.
