Germany and India have "more or less concluded" a deal that would allow a joint venture to build submarines in the South Asian nation, Berlin's envoy to New Delhi said on Wednesday.
India, one of the world's largest arms importers, has been seeking new partners for defence cooperation in an effort to cut its decades-long reliance on Russian military hardware.
Discussions with Berlin have progressed in recent months over an agreement for Germany's Thyssenkrupp Marine Systems to build six submarines for the Indian navy in partnership with Indian state-run Mazagon Dock Shipbuilders.
The deal could be worth about $8 billion, according to local media reports.
"We have a submarine deal, which has more or less concluded in... text and the agreements, but which still has to be signed," Ambassador Jasper Wieck told reporters in New Delhi.
The envoy said "everything has been cleared" on the German side and Berlin "has agreed to all the documents that have been worked on".
"From the German side, we could sign tomorrow," Wieck said.
"It's up to the Indian side... to give its final approval, and we're waiting for that decision."
India has not commented on the state of negotiations.
Any deal would allow India to replace its ageing fleet of Russian-built submarines and likely include technology transfer provisions to help its rapidly expanding defence industry.
Building the subs in India would be a boon for New Delhi, which has also been diversifying its arms imports away from Russia to guard against potential supply-chain vulnerabilities due to Moscow's war with Ukraine.
Wieck said the "very ambitious" defence industrial roadmap signed with India in April would include "many other projects... being discussed by the appropriate companies".
India's defence minister promised last year at least $100 billion in fresh domestic military hardware contracts by 2033.
In recent years, India has opened an expansive new helicopter factory; launched its first domestically made aircraft carrier, warships and submarines; and conducted a successful long-range hypersonic missile test.