Tit-For-Tat? India Pauses Key P-8I Deal As US Imposes Tariffs On Russian Oil Imports | India News
In a major retaliation step in the face of increasing trade voltages, India is claimed to have suspended a vital 31,500 RS (US $ 3.78 billion) defense. The movement sees a direct reaction to US President Donald Trump’s 50% duty threat to Indian oil imports, as well as hypocritical from Russia to the US and EU energy purchases from Russia.
The President of the Trump provided the announcement of tariffs against India on the grounds that he was ongoing oil from Russia. However, India said that the US and European countries imported large amounts of oil, gas and fertilizer from Russia and mentioned the double standards of this movement. A recent CREA (Energy and Clean Air Research Center) report has also overlooked the reasons behind Trump’s movement.
After a long period of silence about President Trump’s discourse, India made a statement recently explaining its position and now initiated concrete actions.
Main Action: Poseidon agreement stopped
IDRW has agreed to temporarily suspend the purchase of India’s six Poseidon anti-Submarin plane from American Aviation and Space Major Boeing. It has been reported that the decision to suspend the 3 August agreement came at a time when it increased military modernization against the Chinese military presence in the Indian Ocean region and the Arab Sea.
There are 12 P-8 aircraft operated by the Indian navy. India was the first overseas customer in which Boeing had ordered eight aircraft for US dollars in 2009 (later about 19,000 crore). In 2016, four more aircraft were purchased for about 8,500 Crore.
Importance of P-8I aircraft
In May 2021, the United States approved the sale of six P-8I aircraft to India. For the Eastern Naval Command, this transaction is initially estimated to be approximately 2.42 billion US dollars (approximately 21,000 crore). In July 2025, the transaction was delayed due to increased costs to USD $ 3.6 billion (approximately 31,500 crore). Even when the cost increased, the Indian government was said to be on the verge of completing this year’s agreement because the Indian navy strongly praised the performance of the aircraft.
The P-8i Poseidon has the latest abilities, such as an intermittent NASM-MR ship of 350 km, which is very useful to closely monitor the Chinese sea presence in the Indian Ocean. Nevertheless, the current tariff cold seems to have taken India back to this vital purchase.
Possible results for Boeing and Indian Navy
If this sales are completely canceled, it will be a major setback for Boeing, which has approximately 5,000 employees in India and contributes to USD $ 1.7 billion (approximately 15,000 crore) to the Indian economy.
Although freezing in P-8I purchase, especially hundreds of maritime ships and 20,000 traders will affect the surveillance ability of the Indian Navy for the authority of the major maritime judiciary, there are rumors that India may be prone to domestic solutions. When the Poseidon aircraft costs are too high, India may be prone to domestic surveillance aircraft development projects, DRDO and state are said to develop such domestic solutions.
