Saab pulls out of Indian submarine project, citing industrial policy concerns

02 October 2019

Key Points

  • The Swedish defence group withdraws from India’s Project 75(I) submarine procurement programme
  • The move highlights the growing burden on foreign OEMs in India and concerns about project control

Swedish defence group Saab has withdrawn from India’s long-deferred Project 75(I) programme to procure six diesel-electric attack submarines for the Indian Navy, the company told Jane’s on 2 October.

It said the decision was based on scheduling and risks related to engaging with India’s ‘Strategic Partnership’ policy, which mandates local construction supported by technologies and knowledge transferred from foreign original equipment manufacturers (OEMs).

A Saab spokesperson said, “It is a decision we have made due to the customer’s requirements regarding the time schedule and issues related to the Strategic Partnership policy where there is a disparity between Saab’s ability to retain control versus our obligations and liabilities.

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