India has officially paused the procurement of six additional Boeing P-8I maritime patrol aircraft as of August 2025. This decision follows a drastic nearly 50% price increase largely driven by the imposition of a 25% U.S. tariff on Indian exports, part of broader trade tensions triggered by the Trump administration’s policies, reported Republic World in a video release.
While the Ministry of Defence had earlier shown willingness to continue with the acquisition despite rising costs, the new tariff regime has led to a strategic reassessment of the deal, which is now under review but not definitively cancelled.
The initial P-8I contract was signed in 2009 for eight aircraft at $2.2 billion, followed by a second order of four more in 2016 at over $1 billion. The Indian Navy has operated a total of 12 P-8I aircraft and has long advocated expanding the fleet to 18 to ensure full-spectrum maritime surveillance of the Indian Ocean Region (IOR).
The pressing need for such capacity comes amid escalating Chinese naval activity involving submarines and vessels conducting surveys or anti-piracy missions, which require tracked intelligence for India’s maritime security.
The procurement deal for the six additional aircraft, approved by the U.S. State Department in 2021 for approximately $2.42 billion, has faced delays and cost escalations due to supply chain issues and the U.S. tariffs, pushing the estimated cost to about $3.6 billion by mid-2025.
This escalation presents significant financial and strategic challenges for India. The pause signals a broader review of high-value defence deals amidst rising costs, evolving geopolitical dynamics, and a stronger focus on strategic autonomy and indigenous defence production, aligning with India’s “Make in India” initiative.
India’s pause is also interpreted as a diplomatic signal amidst strained U.S.-India trade relations, particularly in response to President Trump’s imposition of tariffs targeting Indian exports, which India views as economic coercion.
While this pause disrupts plans to bolster maritime surveillance capabilities, it also opens the door for re-evaluating domestic alternatives and broader procurement strategies as India navigates between maintaining strategic ties with the U.S. and asserting its autonomy in defence acquisitions.
Based On Republic World Video Report
