The Sindhurakshak, a Russian Kilo Class submarine built in 1997 at Admiralteiskie Verfi shipyard in St Petersburg, underwent mid-life up-gradation.
The Egyptian Navy towed the submarine to Port Said along the coast of the Mediterranean Sea in March, sources said.
Welcoming the gesture, Indian ambassador to Egypt Navdeep Suri praised the professional handling by the Egyptian Navy.
In thank you cable to Egypt's Defence and Military Production Minister Gen Abdel-Fattah el-Sisi, Suri said, "(Egyptian) Naval troops towed the submarine in a professional way to a safe Egyptian port", the official MENA news agency reported.