India Pauses $3.6 B Boeing Jet Purchase Amid Price Surge
India has put on hold its plan to purchase six additional Boeing P-8I maritime patrol aircraft in a deal valued at $3.6 billion. The original agreement, cleared in 2021, was pegged at $2.42 billion. However, a combination of supply chain disruptions, inflation, and newly imposed U.S. tariffs has pushed the cost higher, prompting the Ministry of Defence to reconsider before moving forward.
Why the Costs Increased
The recent surge in cost is being attributed largely to tariffs on key components sourced from the United States, which have driven up manufacturing and delivery expenses. With the overall price now far above the original terms, officials are assessing whether the deal remains financially viable. While discussions are ongoing, there has been no official confirmation from the government about the indefinite status of the order.
Air India’s Separate Upgrade Plan
In a parallel development, Air India is continuing the refurbishment of its Boeing fleet. Several Boeing 787-8 Dreamliners are being flown to the U.S. for complete cabin overhauls. The upgrades include refreshed interiors and a three-class configuration—Business, Premium Economy, and Economy. The airline expects these aircraft to return to service before the end of the year, enhancing passenger comfort and service standards.
Future of the P-8I Acquisition
The decision on the P-8I purchase will depend on whether revised negotiations can bring the cost back within acceptable limits. If talks are successful, the procurement could still proceed; otherwise, India may delay or scale back its plans. For now, the focus remains on balancing operational requirements with fiscal prudence amid a shifting geopolitical and trade environment.
