A submarine, build by ThyssenKrupp Marine Systems (TKMS) company, moves through the water (file photo)
| Photo Credit:
REUTERS/ANNEGRET HILSE

Germany and India are hammering out the details of a submarine manufacturing deal worth at least $8 billion — the largest-ever defence agreement for New Delhi, according to officials with direct knowledge of the details. 

The agreement, negotiated ahead of Chancellor Friedrich Merz’s visit to the South Asian nation next week, would for the first time include technology transfer for submarine production, the people said.

India’s navy operates about a dozen aging Russian submarines and six new French-made models. If the deal under discussion goes ahead, India would scrap plans to buy three more French subs, the people said. 

Germany’s Thyssenkrupp Marine Systems GmbH and Indian state-owned Mazagon Dock Shipbuilders Ltd. will work together to manufacture the vessels, said the people, who asked not to be named discussing confidential information. 

Merz, on his maiden visit to India, will meet with Prime Minister Narendra Modi for talks in the western Indian state of Gujarat on Monday before flying to the technology hub of Bengaluru to see German companies there, a German government spokesman said.

The two countries are likely to increase cooperation in the pharmaceuticals sector as well as defence, the people said. Merz also plans to use his talks with Modi to speed up broader negotiations between the European Union and India on a free-trade agreement.

It will be Merz’s first trip abroad with a large delegation of German CEOs. The chancellor is expected to visit China with another business delegation in coming weeks, though there is no date fixed yet with Beijing.

The new submarines will be equipped with air-independent propulsion systems, which increase the boats’ endurance and allows them to remain submerged longer than with diesel-electric propulsion, the people said. The vessels will add to New Delhi’s ability to police the vast waters of the Indian Ocean region as China asserts its presence there. 

A spokesperson for Thyssenkrupp Marine Systems declined to comment. India’s Ministry of Defence and Ministry of External Affairs did not immediately respond to a request for a comment.

The deal shows a deepening of defence ties between the two nations and is aided by a combination of factors. 

New Delhi has long been encouraging global defence manufacturers to partner and share technology with Indian entities to ramp up weapons manufacturing there. The Modi government blocked the import of most defence platforms, including fighter jets, helicopters, artillery and warships, to encourage foreign weapons makers to shift production lines to India in 2020. 

Even so, India is the second-largest importer of military hardware globally, sourcing most of its equipment from Russia, according to the Stockholm International Peace Research Institute, an international think tank that tracks weapons purchases.  

Germany’s defence industry kicked into high gear after the Russian invasion of Ukraine. Berlin’s decision to share technology to make one of the most complex military platforms is also aimed at reducing India’s dependence on Russia for weapons, the people said.

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Published on January 8, 2026

Axis Finance Ltd, an NBFC, has announced the launch of Axis Finance Vyapar business loan, a collateral-free credit solution for micro and small businesses (MSMEs) across semi-urban and rural markets to meet financial goals.

Vyapar business loan aims to empower micro and small entrepreneurs across the retail, service and trading segments by offering loans of up to ₹10 lakh, flexible tenures and zero collateral requirements.

Commenting on the development, Sai Giridhar, MD & CEO, Axis Finance, said, “Micro and Small entrepreneurs are the backbone of India’s economy. Through Vyapar Business Loan, we aim to make formal credit more inclusive by providing collateral-free finance to shopkeepers, traders and service providers across the country. The product enables small business owners to scale operations, enhance working capital and fulfil growth aspirations with confidence and efficiency.”

Published on January 8, 2026

Equities extended their losing streak for a fourth consecutive session on Thursday, with the Sensex and Nifty dragged lower by heavy selling in metal stocks and continued weakness in oil and gas counters.

Sensex traded 595.20 points or 0.70 per cent lower at 84,365.94 at 12.30 pm, and Nifty 50 depreciated 205.40 points or 0.79 per cent to 25,935.35. BSE Sensex witnessed a fall of over 730 points in today’s trading session. Nifty 50 fell over 250 points from the previous close of 26,140.75.

Cautious sentiment prevailed as concerns over potential US tariff actions and sustained foreign fund outflows overshadowed optimism around earnings growth.

Both midcap and smallcap stocks posted sharp losses, declining over 1 per cent each. All sectoral indices traded in the red, led by metal and oil & gas stocks, which fell 2–3 per cent and weighed heavily on the broader market.

Top gainers & losers of Nifty 50

Shares of Bharat Electronics, Eternal, Adani Ports, SBI Life, ICICI Bank, Bajaj Finance and Bajaj Auto led the gainers of Nifty 50, while Hindalco, ONGC, Jio Financial Services, Wipro, Adani Enterprises and JSW Steel traded as major laggards.

Hindustan Zinc, JSL, National Aluminium, Hindustan Copper and Jindal Steel traded 4-6 per cent lower, dragging the Nifty metal index over 3 per cent.

Market breadth remained firmly negative, with declines far outpacing advances. Of the 3,085 stocks traded on the National Stock Exchange at the time of writing, as many as 2,457 traded lower, while only 552 stocks advanced and 76 remained unchanged.

The weakness was also reflected in the number of stocks hitting fresh lows, with 114 stocks, featuring Page Industries, Colgate, Whirlpool and UBL, touching their 52-week low compared to just 40 stocks (including Bajaj Auto, Polycab, MCX, Thangamayil Jewellery and Eicher Motors) at a 52-week high.

Meanwhile, 41 stocks were locked in the upper circuit, while 55 stocks hit the lower circuit, underscoring the overall bearish sentiment in the market.

Midcap & smallcap movers

IDFC First Bank, Dixon and Bharat Dynamics posted modest gains among the midcap index, while National Aluminium, Hindustan Petroleum, NMDC, Indian Bank and SAIL dragged 3-5 per cent.

Under the smallcap segment, Trident, Data Patterns and Star Health gained 1-6 per cent, while Signature Global, Hindustan Copper, KEC International and Swan Corp dragged 3-10 per cent.

On the BSE, Balaji Amines rallied 10 per cent, Trident, Alok Industies and Avalon were other top gainers. On the losing side were Gokex, Signature Global, Avanti Feeds, MOIL and PGIL falling 6-12 per cent.

Published on January 8, 2026