Navy chief Admiral Sunil Lanba's wife Reena Lanba launched the submarine, constructed by shipbuilder Mazagon Dock Limited (MDL) here.
The submarine will undergo rigorous tests for one year before it is commissioned, Admiral Lanba said.
He called for introspection in the ship building business in view of the delay in the construction and commissioning of submarines.
"I also believe some introspection is called for at this stage. The project (submarine construction at MDL) began 12 years ago. Notwithstanding the associated complexities, we need to make resolute efforts to increase the speed of construction and ensure timely delivery of the remaining submarines," he said.
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"To keep the induction plan of the Navy on track with a focused approach, this premier yard (MDL) will be able to deliver the platforms on schedule," he said.
A contract with French company Naval Group was signed in 2005 for the supply of six submarines. The first submarine INS Kalvari was commissioned in December last year.
In January last year, Khanderi, the second Scorpene class submarine, was launched.
Lanba also announced that henceforth certification works would be completed at the MDL.
"The launch of Karanj also marks a significant departure from the manning and training philosophy that we adopted for the first two submarines. From this third submarine onwards, you (MDL) would be fully self-reliant as far as training and certification processes are concerned," he said.
Talking to reporters after the launch, the Navy chief said, "The Kalvari class is miles ahead in stealth and technology compared to (that in) the neighbouring country. Every submarine at least takes a 12-month time for various tests before commissioning."
The first three submarines of Scorpene class are named Kalvari, Khanderi and Karanj. The remaining three (to be launched in the future) will be called Vela, Vagir and Vagsheer, a Navy spokesperson said.
Asked about the future of the decommissioned aircraft carrier 'Viraat', Lanba said they have received a proposal from the Andhra Pradesh government which wants to convert the vessel into a maritime museum.
"They are looking at a site near Visakhapatnam. They have appointed a company to make a detailed project report, which is being done. Once we have a concrete proposal, we can take it forward for Viraat," he said.
Prime Minister Narendra Modi last month commissioned the then first of the six Scorpene class submarines, the Kalvari, into the Navy and said its induction was a big step in India's defence preparedness.