INS Khanderi, second of the Scorpene class submarine, was launched in Mumbai on Thursday.
The submarine was launched by Bina Bhamre, the wife of the Union Minister of State for Defence Subhash Bhamre.
"I'm confident that the day is not too far when Mazagon Dock Limited will build submarines for other nations as well", Bhamre said after the launch.
The submarine will undergo several trials till December before it is commissioned into the Indian Navy. Second Scorpene class submarine Khanderi launched in Mumbai.
Defence officials said Khanderi uses precision-guided weapons including torpedoes as well as tube-launched anti-ship missiles, which can be launched underwater or on surface.
In 2005, India purchased six Scorpene submarines for Dollars 3 billion.
INS Khanderi is the second of the six submarines being built at Mazagon Dock Shipbuilders Limited. However, the project is running four years behind schedule.
The submarine gets its name "Khanderi" after the Island fort of Maratha forces, which played an important role in ensuring their supremacy at sea in late 17th century.
As per reports, the submarine will be going through rigorous trials and tests, both at the harbour and at sea, while on surface. It will complete exact 50 years on December 8.
The submarine is created to operate in all theatres, including the tropics.
INS Khanderi can undertake diverse types of missions including anti-surface warfare, anti-submarine warfare, intelligence gathering, mine laying, area surveillance and others.
The submarine has been built according to the principle of modular construction. This involves dividing it into a number of sections and outfitting them concurrently.
It'll operate along with Naval Task Force with its stealth, that it is known for.