As of August 2025, India has formally put a stop to the purchase of six further Boeing P-8I maritime patrol aircraft. According to a video release from Republic World, this decision comes after a sharp price increase of around 50%, which was mostly caused by the Trump administration’s actions that resulted in a 25% U.S. tariff on Indian exports.
Although the Ministry of Defense had previously indicated that it was inclined to proceed with the acquisition in spite of growing prices, the new tariff regime has caused a strategic reevaluation of the agreement, which is currently being reviewed but is not yet officially terminated.
2009 saw the signing of the first P-8I deal, which cost $2.2 billion and included eight aircraft. In 2016, a second order of four aircraft was placed, costing more than $1 billion. In order to provide full-spectrum maritime surveillance over the Indian Ocean Region (IOR), the Indian Navy has long pushed for the fleet to be increased to 18 P-8I aircraft, of which it currently operates 12.
India’s maritime security depends on tracked intelligence, and the increasing Chinese naval activities including submarines and vessels performing surveys or anti-piracy missions highlights the urgent need for such capacity.
The U.S. State Department approved the purchase agreement for the six more aircraft in 2021 for around $2.42 billion, but supply chain problems and U.S. tariffs have caused delays and cost increases, increasing the expected cost to roughly $3.6 billion by mid-2025.
For India, this escalation poses serious strategic and financial difficulties. In line with India’s “Make in India” campaign, the delay denotes a wider evaluation of high-value defense transactions amid growing costs, shifting geopolitical realities, and a greater emphasis on strategic autonomy and domestic defense manufacturing.
Amid tense trade relations between the United States and India, especially in reaction to President Trump’s tariffs on Indian products, which India perceives as economic coercion, India’s suspension is also seen as a diplomatic gesture.
Conflicts over Russian oil shipments into India have exacerbated this conflict and prompted threats of tariffs from the US. Indian officials stress the value of the defense partnership while indicating that strategic choices will not be influenced by economic factors.
A complicated interaction between rising tariff-related costs, strategic recalibration in the face of shifting geopolitical threats, and India’s desire for defense self-reliance is reflected in the P-8I aircraft acquisition suspension.
