In addition to complicating an already developing strategic defense alliance between the two countries, US President Donald Trump’s recent imposition of tariffs and fines on India has caused a great deal of uncertainty and a chilling effect on any US arms transactions in India.
Ongoing and potential multi-billion-dollar defense contracts have been disrupted by the announcement of a 25% tariff on Indian goods and an undetermined penalty related to India’s purchase of Russian oil and weapons. India has also temporarily halted approvals of important US defense procurements until tensions subside.
The “Make in India” strategy is becoming more and more important in India’s defense acquisitions, which force international businesses to collaborate with Indian businesses and produce domestically. In order to promote local defense production capabilities, this policy represents a strategic shift.
In light of this, there are still important US-Indian projects in the works, but they are currently overshadowed by tensions brought on by tariffs. Boeing and Lockheed Martin are the main bidders for 114 multi-role fighter jets that the Indian Air Force (IAF) is considering in a significant tender. Such a transaction would require billions of dollars in expenditures and the relocation of production lines to India.
In order to monitor disputed borders and conduct anti-submarine warfare, India intends to purchase six more Boeing P-8I long-range maritime surveillance aircraft. The agreement reached during the Modi-Trump summits has brought the contract close to completion. Twelve previous units had already been purchased by India.
The Stryker armored fighting vehicle, including amphibious versions with built-in Javelin anti-tank missiles, is being assessed by the Indian Army. A global Stryker manufacturing base in India is being proposed by the US. Given the anticipated high demand for infantry vehicles, the Indian Army is anticipated to hold demonstrations this year.
Under long-term collaboration agreements, Bharat Dynamics Limited and US companies Raytheon and Lockheed Martin are in talks to co-produce the Javelin missile system in India.
TATA Advanced Systems Limited and Lockheed Martin submitted a combined offer to produce 80 C-130J special operations aircraft in India. An existing factory in Hyderabad run by TATA Lockheed Martin Aero-Structures Limited contributes to the global production chain for the C-130J.
The Indian Army may purchase 11 more Boeing Apache AH-64E assault helicopters for rotary-wing platforms, and the Indian Air Force is seeking to increase the number of Chinook heavy-lift helicopters in its fleet.
In addition to these platforms, the Trump administration has proposed to sell India F-35 stealth fighter fighters, a highly advanced and exclusive aircraft that is only available to a select few countries.
India’s present employment of Russian S-400 air defense systems and the strategic need to preserve operational autonomy over the jets are only two examples of the operational and political obstacles that this offer faces while it is still in the proposal stage without a formal agreement.
These defense agreements have been clouded by the combined effect of Trump’s tariffs and fines, which have strained relations and increased prudence in New Delhi. While weighing the desire to strengthen defense cooperation with the US against strategic autonomy and economic consequences, Indian officials are carefully weighing the ramifications and postponing decisions on significant agreements.
Despite being strong and expanding because to programs like the “COMPACT” agreement, which aims to speed up military cooperation and technology transfers, the US-India defense relationship is currently being hampered by controversial trade policies.
President Trump’s tariffs and penalties have complicated progress on these deals, causing a cautious pause in approvals and raising questions about the near-term future of US arms sales and manufacturing partnerships in India. Despite this, the US remains a key defense partner for India, with several ambitious joint manufacturing and procurement projects either underway or proposed.
