New Delhi: India has reportedly put on hold its planned purchase of six additional Boeing P-8I Poseidon maritime patrol aircraft from the United States, a deal valued at approximately $3.6 billion. The move comes in the wake of U.S. President Donald Trump’s announcement of 50% tariffs on Indian goods — a decision that has added new tension to bilateral trade and defence relations.
Rising Costs and Strategic Reassessment
Originally approved by the U.S. State Department in 2021 at a cost of $2.42 billion, the deal’s estimated value has since surged by nearly 50%. Defence industry sources attribute the increase to inflation, global supply chain disruptions, and additional costs linked to the new tariff regime.
The Indian Ministry of Defence (MoD) is said to be reassessing the procurement, weighing the financial impact against operational needs. According to defence analysts, the decision reflects New Delhi’s unwillingness to allow economic pressure to dictate defence policy, especially for critical maritime security assets.
The Role of the P-8I in India’s Defence
The Boeing P-8I is a long-range maritime reconnaissance and anti-submarine warfare aircraft, considered essential for safeguarding the Indian Ocean Region (IOR). Since their induction in 2013, India’s existing fleet has been instrumental in surveillance missions, anti-piracy operations, and monitoring the movement of Chinese naval vessels.
“The P-8I is a strategic asset, but cost escalation of this scale forces any government to re-evaluate its options,” said a senior defence analyst. “It’s not just about buying an aircraft; it’s about sustaining long-term operational readiness.”
Tariffs Adding Strain to Defence Ties
The reported pause coincides with President Trump’s decision to impose a 50% tariff on Indian exports — a move perceived in New Delhi as an aggressive trade measure. Analysts suggest that the timing of the tariff announcement may have influenced India’s decision to delay finalising the aircraft deal.
While the U.S. has often cited defence cooperation as a pillar of the bilateral relationship, the latest developments underscore the complex interplay between trade disputes and strategic defence procurement.
No Official Confirmation
Neither the Indian MoD nor Boeing has formally confirmed the pause. The news, widely reported in defence media circles, remains officially unacknowledged. Some fact-checking outlets have also noted the absence of direct statements from government officials, urging caution until an official announcement is made.
What Lies Ahead
The decision to delay could open the door to exploring alternative suppliers or negotiating revised terms with Boeing. It may also accelerate discussions under the “Make in India” initiative, aimed at boosting domestic defence manufacturing and reducing reliance on foreign vendors.
As both nations navigate the twin challenges of geopolitical alignment and economic friction, the outcome of this deal could signal a recalibration in India–U.S. defence cooperation.
