US Defence Industry in Panic as India Pauses P-8I Aircraft Deal?

India has paused its $3.6 billion deal for six Boeing P-8I Poseidon maritime patrol aircraft, following a 50% price increase and U.S. tariffs on Indian exports. This strategic move supports India’s "Make in India" policy and its goal of achieving defense self-reliance, with the Navy now exploring local alternatives to strengthen maritime surveillance in the Indian Ocean Region (IOR).

The P-8I is a key asset for anti-submarine warfare, reconnaissance, and monitoring, with 12 already in active service. The deal, approved in 2021, was delayed over pricing and budget concerns. India’s decision reflects a shift in priorities—balancing ties with the U.S. and fostering domestic innovation like the DRDO’s NASM-MR. The Navy aims to maintain vigilance with its current fleet while considering homegrown, cost-effective solutions to meet regional challenges.