U.S. Deal with India Hits Snag as P-8I Submarine Hunter Jet Prices Surge by 50%

Washington: The Indo-U.S. defense deal for P-8I submarine-hunting aircraft has hit a major roadblock after the United States increased the price of these crucial naval jets by 50%. India has taken a firm stance against the sudden hike, bringing ongoing negotiations to a standstill.

The P-8I aircraft, often described as the backbone of the Indian Navy, are vital for maritime surveillance and anti-submarine operations. India currently operates 12 P-8I jets and was in the process of acquiring six additional planes to counter growing naval threats from China and Pakistan.

According to reports, Boeing has raised the cost of the six P-8I jets from $2.42 billion to $3.6 billion—an increase of nearly 50%. India has strongly opposed this price escalation. The U.S., however, has defended the hike, citing global supply chain disruptions and logistical challenges as reasons for the higher costs, while refusing to offer any discounts. India has made it clear that it will adhere to the previously agreed price per aircraft.

Experts note that rising tariffs and global manufacturing pressures have driven up the cost of defense equipment worldwide. While India’s current fleet of P-8I jets effectively monitors its maritime zones and strengthens its anti-submarine capabilities, the price surge threatens to slow down the expansion of India’s naval preparedness against China and Pakistan.

U.S. officials have admitted they have limited room to reduce the price. Despite sending representatives and Boeing officials to India, negotiations have failed to resolve the dispute. India first signed the deal for P-8I aircraft in 2009. These jets are specifically designed for maritime surveillance and anti-submarine operations, equipped with anti-ship missiles and live torpedoes.

Analysts believe that the U.S. is leveraging fears of Chinese and Russian naval expansion to capitalize on rising demand for P-8I jets globally. Countries from Australia to Japan are closely monitoring the market, while European nations are also purchasing the aircraft to counter potential Russian threats. As China continues to expand its naval presence in the Indo-Pacific and seeks to establish bases in India’s neighboring regions, India urgently requires these American submarine-hunting jets to safeguard its maritime security.