India's and Russia's military-industrial relations go back 60 years (MiG-21s), if not longer. Also see Foxtrot submarines exported to India in 1967.
/Kjell in a comment has alerted me to a Eurasian Times article of August 20, 2021 that reports:
Germany's TKMS "has said that it might not be able to move forward with the project as it finds the tender requirements “too restrictive”, The Economic Times [in a PaySite article of Aug 20, 2021] reported.""[TKMS] entered the project when the Indian Navy expressed its requirement for a sea-proven Air Independent Propulsion (AIP). This was a crucial component as it provided the boats with the ability to stay underwater for more than two weeks, as opposed to the underwater endurance of 2-3 days in the submarines currently in service.
This requirement of a sea-proven AIP resulted in the removal of many shortlisted foreign vendors and left only Germany and South Korea as the contenders.
The other contenders, Russia, France, and Spain did have AIP technology but they were not suitable for a submarine and thus could not be demonstrated. India’s Defence Research and Development Organisation (DRDO) has also demonstrated its AIP technology, however, it is not yet sea-proven.
According to DRDO, this could take another 4-5 years...."
[most significantly] "...Keeping in mind the technical requirements that come with the project, India says it wants the transfer of high technology [including AIP, maybe to also pass on to Russia, see below] as well as the rights to use these for its future, home-grown projects.
Pete Comment
India has been planning a class of 6 modern AIP, LACM firing submarines under
Project-75I as far back as 2008. Acquiring mature AIP tech has always been the main reason that project has been delayed. India has been claiming, as far back as November 2014, that its DRDO AIP technology would be ready for use for that project. This claim continues, to this day, to be disproven by reality. Only Germany's TKMS and to a lesser extent Sweden have successfully invented mature, proven, efficient AIP tech.
TKMS's AIP tech was transferred to South Korea in Type 214 variants in the early 2000s. South Korea appears to have been given a licence to market TKMS designed subs including AIP tech to countries to Asia-Pacific countries (which includes India). South Korea may also have modified TKMS AIP to the extent that it is considered an indigenous South Korean invention.
India needs Western AIP tech for its own conventional submarines. I also believe Russia sees India as a front or transfer-conduit of that AIP tech to Russian industry. Russia's submarine development budget has been spread thin largely to develop its nuclear subs. There hasn't been enough to develop mature, efficient AIP. So I think Russia has been attempting to legally transfer or steal such AIP - for at least 2 decades. Such AIP for Russia would form the basis of Kilo replacements in the shape of Lada and Amur submarines for the Russian Navy and to export to customer navies, respectively.
India's 13 year old Project-75I rolls haphazardly along but there is a method to this Western technology transfer exercise. The Russian Navy and Russia's export industry may yet be surprising beneficiaries.
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