Reconsidering the acquisition of aerial platforms from the United States—shortly after Washington’s decision to impose 25% tariffs on Indian exports as a supposed sanction for purchasing Russian oil—India has revealed that it has suspended its plans to purchase six additional P-8I Poseidon maritime patrol aircraft for its Armed Forces. Justifying the decision, New Delhi stated that acquisition costs for these aircraft have risen by up to 50%, making it unfeasible to proceed amid ongoing trade disputes.
Delving into some details regarding the cost increase for acquiring new P-8I Poseidons, the Indian government has estimated that the current figure has climbed to approximately USD 3.6 billion—a significantly higher amount than the original agreement. It’s worth recalling that the deal authorized by the U.S. State Department in 2021 was valued at around USD 2.42 billion, which would have allowed India to move forward with its goal of establishing a fleet of 18 patrol aircraft to enhance surveillance capabilities over the Indian Ocean—particularly relevant given the rise in Chinese naval activity.
It is important to note, however, that the suspension of the purchase does not automatically mean the deal has been completely scrapped. According to local media reports, Indian government officials remain hopeful that new negotiations can take place to address the aforementioned price hike. They emphasize that this would still be possible within the framework of the Foreign Military Sales (FMS) program under which the deal falls. The incentive to make such an attempt lies not only in the acquisition of the P-8Is themselves but also in the effort to preserve the more than 5,000 jobs that manufacturer Boeing provides in India.
On a broader note, when examining recent developments in India, it’s worth recalling that the country also recently rejected a U.S. proposal to equip its Air Force with Lockheed Martin’s F-35A stealth fighters. As we reported on August 1, Indian authorities leaned on their policy of prioritizing domestic technological and industrial development supported by know-how transfers from foreign partners. This aligns with the current trajectory of India’s trade dispute with the U.S. In that context, the country appears to be focusing instead on developing its own AMCA fighter jet, which could make its maiden flight between 2027 and 2028.
Taking advantage of the strained relationship between Washington and New Delhi, Beijing’s official media outlets have sought to drive a wedge between the two, reflecting the geopolitical rivalry between the world’s leading powers. A clear example of this can be found in a Global Times article, which accused the U.S. of treating India not as an equal partner with whom to build long-term relations, but rather as a dispensable actor in its foreign policy.
*Images used for illustrative purposes only.
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