Defense Business and Industry

India-US talks stall over 50% price hike for P-8I aircraft.

Negotiations between India and the United States for acquiring six additional Boeing P-8I maritime surveillance aircraft stalled on December 29, 2025, over a nearly 50% price escalation from the 2021 approval of $2.42 billion to approximately $3.6 billion. The US attributes the hike to global supply chain disruptions, inflation, and trade tensions including new tariffs on Indian exports, but Indian officials have rejected the terms, prioritizing cost-effective deals amid budgetary constraints and Aatmanirbhar Bharat initiatives. Vital for countering China’s expanding naval footprint in the Indian Ocean Region, where the existing 12 P-8I aircraft have logged over 40,000 flight hours, the impasse underscores India’s resolve for fair pricing to sustain strategic Indo-Pacific partnerships without compromising fiscal prudence. Despite US delegations’ efforts earlier in 2025, no consensus emerged, prompting reviews of indigenous alternatives like HAL platforms.

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