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First Post
3 days ago
- Business
- First Post
Has India really paused US defence deals over Trump's tariff hike? A fact-check
India's Ministry of Defence has denied reports that it halted major US arms purchases following Trump's decision to double tariffs on Indian exports. While media claims suggest deals for Stryker combat vehicles, Javelin missiles and P-8I aircraft are delayed, officials insist all procurements are moving forward under existing procedures despite the trade dispute read more A view shows a Stryker armoured vehicle with the Washington Monument in the background on the day of a military parade to commemorate the US Army's 250th Birthday in Washington, DC, US, June 14, 2025. File Image/Reuters The tensions had long been simmering but they hit boiled over this week when United States President Donald Trump announced a 25 per cent increase in tariffs on Indian exports, on top of the existing duties, raising the total rate to 50 per cent. The White House linked this decision to India's continued imports of discounted Russian oil, which Trump argued contributed to Moscow's war in Ukraine. The announcement placed India among the most heavily taxed US trading partners. New Delhi quickly condemned the measure, calling it 'unfair, unjustified and unreasonable.' STORY CONTINUES BELOW THIS AD The Ministry of External Affairs also pledged to take 'all actions necessary' to protect the country's economic and strategic interests. Almost immediately, international media began reporting that India had quietly shelved plans to acquire several high-value US defence systems in response to the tariff escalation. These claims suggested that ongoing discussions for Stryker combat vehicles produced by General Dynamics Land Systems, Javelin anti-tank guided missiles co-developed by Raytheon and Lockheed Martin, and six Boeing P-8I maritime reconnaissance aircraft for the Indian Navy had been paused. The aircraft package, valued at approximately $3.6 billion, was reportedly in the final stages of negotiation. Unnamed officials cited by Reuters claimed that Defence Minister Rajnath Singh had been preparing to visit Washington to finalise some of these deals, but the trip was cancelled. Sources said the purchases might proceed once India had a clearer view of the evolving trade situation and the broader state of the bilateral relationship, but not in the immediate term. How New Delhi has responded Following the report, India's Ministry of Defence moved quickly to dispute them. In a statement attributed to an official source, the ministry described the stories as 'false and fabricated' and insisted that 'the various cases (deals) of procurement are being processed as per the extant procedures.' The ministry stated that there had been no formal order to pause any of the planned acquisitions, and that negotiations and approvals were continuing according to established protocols. STORY CONTINUES BELOW THIS AD Another official familiar with the matter told Reuters that while there had been 'no forward movement at least for now,' there was also no written directive to suspend the projects. This meant the government retained the option to accelerate progress on the contracts if circumstances shifted. Why this US-India defence deal matters The systems at the centre of the controversy hold substantial strategic value for India's military modernisation. The Stryker infantry combat vehicle is a highly mobile, armoured platform designed for rapid deployment in various operational environments. The Javelin missile system, meanwhile, is a precision-guided, man-portable anti-tank weapon that has been battle-tested in multiple theatres. Both platforms were earmarked for potential joint production in India, aligning with New Delhi's drive to expand domestic defence manufacturing under the 'Make in India' initiative. The P-8I Poseidon aircraft, already in service with the Indian Navy, is a multi-role maritime patrol and anti-submarine warfare platform. The proposed purchase of six additional units, along with associated support systems, would significantly expand India's maritime surveillance and reconnaissance capabilities in the Indian Ocean and beyond. In February, during Prime Minister Narendra Modi's meeting with Trump at the White House, the two leaders announced their intent to move forward on these acquisitions and co-production agreements. STORY CONTINUES BELOW THIS AD They also signalled plans to finalise a new 10-year framework for the US-India Major Defence Partnership, designed to strengthen cooperation in the 21st century security environment. How India & US have grown closer vis-à-vis defence Over the past two decades, Washington has become one of New Delhi's key defence suppliers, second only to Moscow in total value. This transformation accelerated after the signing of the 2008 civil nuclear agreement, which opened the door to broader strategic engagement. The growth has been substantial: bilateral defence trade has risen from under $1 billion to more than $20 billion. According to US Congress documents accessed by Firstpost, India has acquired a wide range of US-origin platforms across air, sea, and land domains, including: Air systems: 28 AH-64 Apache attack helicopters (25 delivered), 1,774 AGM-114 Hellfire anti-tank missiles (1,454 delivered), 600 WGU-59 air-to-surface rockets, 245 Stinger portable surface-to-air missiles, 15 CH-47 Chinook transport helicopters, 13 C-130J Super Hercules transport aircraft, 11 C-17 Globemaster III heavy transport aircraft, 12 APG-78 Longbow fire-control radars, two MQ-9A Reaper UAVs (leased in 2020), and various precision-guided munitions. Naval platforms: 1 Austin-class amphibious transport dock, 24 MH-60R Seahawk naval helicopters (12 delivered), 12 P-8I Poseidon maritime patrol aircraft, 78 MK 54 lightweight anti-submarine torpedoes (62 delivered), 6 Sea King ASW helicopters, 63 Harpoon anti-ship missiles, and 18 naval gas turbines. STORY CONTINUES BELOW THIS AD Land systems: 12 Firefinder counter-battery radars, 145 M-777 155 mm howitzers, 1,400 M982 Excalibur precision artillery shells, and 145,400 SIG Sauer SIG716 assault rifles. An Apache helicopter flies as Nato holds training exercise 'Immediate Response' drills with host nations at Krivolak army base, North Macedonia, June 2, 2025. File Image/Reuters Beyond procurement, the India-US defence relationship is anchored by multiple dialogue mechanisms and joint initiatives. The Defence Policy Group (DPG), co-chaired by the Indian Defence Secretary and the US Under Secretary of Defense (Policy), provides a structured forum for reviewing all aspects of bilateral defence cooperation. The most recent DPG meeting took place in Washington DC in May 2023. Other regular engagements include the Defence Production and Procurement Group (DPPG), the Joint Technology Group (JTG), the bilateral Maritime Security Dialogue, the Industrial Security Summit, and the Defence Trade and Technology Initiative (DTTI). Operationally, the two militaries conduct regular joint exercises across all domains, share intelligence, and increasingly cooperate on maritime security. Since 2022, US Maritime Sealift Command vessels have made multiple port calls to Indian shipyards for repair and allied services under commercial arrangements. STORY CONTINUES BELOW THIS AD How India has diversified its defence portfolio India remains the world's second-largest arms importer, according to the Stockholm International Peace Research Institute (SIPRI). For decades, Russia dominated as New Delhi's primary arms supplier, but its share of the market has been eroding. Several factors have contributed to this change: Moscow's defence industry has been under pressure to meet its own operational needs during the war in Ukraine; Western sanctions have complicated delivery schedules; and the performance of certain Russian systems in combat has raised questions. These dynamics have prompted India to diversify its sources, turning increasingly to the United States, France, and Israel for advanced capabilities. Nonetheless, the structural dependence on Russian-origin platforms — particularly in areas like air defence, armoured vehicles, and legacy aircraft — ensures continued cooperation. In recent months, Russian officials have sought to market new systems to India, including the S-500 long-range surface-to-air missile system. However, Indian officials have indicated there is no current requirement for such acquisitions. How Trump has shifted his tone towards India Energy trade remains a key variable in the India-Russia-US triangle. Since the start of the Ukraine conflict, India has expanded its imports of discounted Russian crude, arguing that it is acting in the national interest to secure affordable energy. While New Delhi has signalled a willingness to reduce these imports if equivalent terms can be secured elsewhere, including from US suppliers, this has been complicated by global market dynamics. STORY CONTINUES BELOW THIS AD According to Indian sources, the price advantage of Russian oil has diminished, with discounts now at their lowest level since 2022. Nonetheless, the perception that India is maintaining a lifeline for Russian exports has been a persistent irritant in Washington, particularly under Trump. The tariff dispute is the latest in a series of irritants affecting India-US ties. Earlier in the year, Trump claimed that his administration had brokered a ceasefire between India and Pakistan after a four-day confrontation between the two nuclear-armed neighbours in May — a claim repeatedly rejected by New Delhi. The US President also hosted Pakistan's army chief at the White House shortly after the incident, adding to Indian concerns. Despite these political frictions, the underlying defence and security cooperation remains strong, driven largely by shared strategic interests in countering China's influence in the Indo-Pacific. Also Watch: Based on official statements from India's Ministry of Defence, there is no confirmed suspension of US arms deals. STORY CONTINUES BELOW THIS AD While some procurement timelines may have slowed amid the tariff dispute, the absence of a formal pause order suggests the projects remain in play. With inputs from agencies
India Today
3 days ago
- Business
- India Today
No decision to scrap India-US defence deals after Trump tariffs: Sources
Days after US President Donald Trump doubled India's tariffs to 50 per cent, sources told India Today TV that no decision has been taken to cancel defence deals with Washington, DC, and that the status quo on defence procurement has been supplies from the US continue to flow into the country under existing contracts, and sources added that talks on follow-up orders will continue.A senior Defence Ministry official told India Today TV that the Reuters story on India pausing defence purchases from the US is "false and fabricated."A Reuters report earlier claimed that India had planned to send Defence Minister Rajnath Singh to Washington, DC, last week. However, government sources have dismissed the claim, stating that there was no formal confirmation of Rajnath Singh's visit to the had been planning to send Defence Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been cancelled, two of the people in an exclusive conversation with India Today TV, senior vice-president of IG Drones, retired Major General Padhi, downplayed the direct impact on defence relations between New Delhi and Washington, DC, but flagged concerns over a potential trust deficit between the two strategic further noted that India and the United States share close to 20 defence agreements and are engaged in a broad spectrum of military cooperation. 'India has been a key buyer of US-origin platforms like the Apaches, Chinooks, P-8I aircraft, and MQ-9 drones. We are also awaiting GE engines for the Tejas Mk1A fighters. None of these ongoing or upcoming deals are expected to be affected by Trump's tariff move,' he said, adding that strategic interests continue to bind the two nations.- EndsMust Watch
India Today
4 days ago
- Business
- India Today
Trump's tariffs may erode trust but won't hit defence ties: Ex-senior Army officer
Following Donald Trump's repeated tariff announcements on Indian exports to the US, retired Major General RC Padhi downplayed the direct impact on defence relations between New Delhi and Washington, D.C., but flagged concerns over a potential trust deficit between the two strategic an exclusive conversation with India Today TV, Major General Padhi, senior vice-president of IG Drones, noted that India and the United States share close to 20 defence agreements and are engaged in a broad spectrum of military has been a key buyer of US-origin platforms like the Apaches, Chinooks, P-8I aircraft, and MQ-9 drones. We are also awaiting GE engines for the Tejas Mk1A fighters. None of these ongoing or upcoming deals are expected to be affected by Trump's tariff move,' he said, adding that strategic interests continue to bind the two nations. However, he cautioned that unilateral economic measures by the US can lead to erosion of trust. 'Tariffs may not stop the deals, but they do create a credibility gap. India will factor this in when considering long-term defence partnerships,' he balancing ties with other global powers, the retired general stressed that India's decades-old relationship with Russia remains unaffected by any pressure or policy change from Washington.'We have strong defence ties with Russia, France, Israel and these will continue. In fact, in the long run, India may prefer reliable partners and pursue self-reliance in defence manufacturing rather than over-dependence on the US,' he India's sovereign decision-making, Majoral General Padhi said, 'India's national interest comes first. We are strong enough to decide our own course. The current glitch caused by the tariff is temporary and can be overcome.'When asked about US-Pakistan dynamics, the veteran was blunt in his assessment."Pakistan is a beggar nation. The US has used it for its own interests. But that equation is irrelevant to India. We've already demonstrated our military superiority to Pakistan during Operation Sindoor," he General Padhi believes that while the Trump tariff may introduce temporary friction, the fundamentals of India-US defence cooperation remain robust and India will continue to make choices that serve its long-term strategic goals.- Ends
India.com
5 days ago
- Business
- India.com
Tit-For-Tat? India Pauses Key P-8I Deal As US Imposes Tariffs On Russian Oil Imports
In a huge retaliatory step in the face of growing trade tensions, India has allegedly suspended a vital Rs 31,500 crore (around USD 3.78 billion) defense transaction with America. The move is a direct reaction to US President Donald Trump's threat of a 50% duty on Indian oil imports, an action India sees as hypocritical as it compares to parallel US and EU energy purchases from Russia. President Trump's government had made the announcement of tariffs against India on the grounds of its ongoing purchase of oil from Russia. But India has always mentioned the double standards involved in this move, noting how the U.S. and European countries import large quantities of oil, gas, and fertilisers from Russia as well. A recent CREA (Centre for Research on Energy and Clean Air) report has also allegedly discredited the reasons behind Trump's move. After maintaining silence for an extended period regarding President Trump's rhetoric, India recently issued a statement clarifying its position and has now seemingly initiated concrete actions. Major Action: Poseidon Deal Halted India has agreed to temporarily suspend the buy of six P-8I Poseidon anti-submarine aircraft from American aerospace major Boeing, defense website IDRW reported. The reportedly August 3 decision to suspend the deal came at a time when India is ramping up military modernization against growing Chinese military presence in the Indian Ocean Region and Arabian Sea. There are 12 P-8I aircraft operated by the Indian Navy. India was Boeing's first overseas customer for the aircraft in 2009 when it ordered eight planes for about USD 2.2 billion (then about ₹19,000 crore). Four more aircraft were bought for about ₹8,500 crore in 2016. Importance Of The P-8I Aircraft In May 2021, the U.S. approved the sale of six more P-8I aircraft to India. This transaction for the Eastern Naval Command was initially estimated to be at about USD 2.42 billion (about ₹21,000 crore). The transaction was delayed owing to rising costs, with its worth ballooning to USD 3.6 billion (about ₹31,500 crore) in July 2025. Even as the cost increased, the Indian government was said to be on the verge of completing this year's deal because the Indian Navy strongly commended the aircraft's performance. The P-8I Poseidon has the latest capabilities, such as NASM-MR anti-ship missiles with a 350 km range, which would be extremely useful for closely tracking Chinese naval presence in the Indian Ocean. Yet, the current tariff standoff seems to have made India hold back on this vital purchase. Possible Consequences For Boeing And Indian Navy If this sale is completely canceled, it will be a major setback for Boeing, which has about 5,000 employees in India and contributes about USD 1.7 billion (approximately ₹15,000 crore) to the Indian economy. While the freeze on the P-8I purchase would affect the Indian Navy's surveillance ability, especially for its huge maritime jurisdiction of hundreds of naval ships and 20,000 merchant vessels, there has been rumor that India might be inclined towards indigenous solutions. With the expense of Poseidon aircraft being very high, India could be inclined towards its indigenous surveillance aircraft development projects, with DRDO and HAL said to be developing such indigenous solutions.
India.com
01-08-2025
- General
- India.com
Bad news for US Navy, P-8A aircraft scrapped after F-35C fighter jet crash... how will US fight China?
Bad news for US Navy, P-8A aircraft scrapped after F-35C fighter jet crash... how will US fight China? The United States Navy is forced to scrap a P-8A aircraft, after an F-35C aircraft was crashed. This has raised serious questions on its preparations. The P-8A Poseidon aircraft crashed shortly after passing beyond the runway in Hawaii, in 2023, leading to the decision of its scrapping. Recently, another Navy F-35C crashed on an Aircraft Carrier in California. Both of the aircrafts are essential and important assets of the US Navy, and are considered to be major pillars of surveillance as well as attacking. Sources from the US Navy have confirmed about the scrapping of the P-8A aircrafts, confirms The War Zone. The reports mention that the P-8A aircraft was built on the Boeing 737-800 base, is a modern maritime surveillance and anti-submarine aircraft. The accident has led to a plan being devised to scrap the aircraft, as the cost of repairing it was very high. The aeroframe has been badly damaged due to the aircraft being submerged in salt water for about 2 weeks. Hence, it has been officially declared that it will be scrapped after taking out a few components which are in good condition. These components would be used to install in other P-8A aircrafts if and when needed. The task of scrapping has already started, and it is expected to complete by the end of this month. Has work begun to scrap P-8A aircraft? On November 20, 2023, the P-8A aircraft landed uncontrollably off the runway of Marine Corps Air Station, Kaneohe Bay (component of US Marine Corps Base Hawaii). This was caused because of heavy rains and low visibility due to clouds. The plane went in to the seabed, and was left resting on coral and sand in shallow waters of the Bay, about 50 yards from the coast. Later, 2000 gallons of fuel left in the plane was taken out, but the plane remained there for 2 weeks, causing a lot of damage to many components of the aircraft. Initially, the US Navy wanted to save the plane, but the estimated costs for the same rose to about $1.5 million USD. After several attempts were made to bring the plane into service and the costs constantly rising, the $171 million dollar plane was considered completely destroyed. The maximum range this aircraft offers is about 7,500 km, and can fly for 10 hours straight. This allows it to conduct long-range patrols in areas like the Indian Ocean or the South China Sea. Apart from this, the aircraft is equipped with modern surveillance and reconnaissance equipment, such as a long-range X-band radar that can identify marine objects hundreds of kilometres away. It is also equipped with sophisticated electronic warfare systems and high-resolution digital electro-optical (EO) and infrared (IR) sensors. Does Indian Navy have P-8I aircraft? India also uses the P-8A aircraft, but the name of the Indian variant is P-8I, where I stands for India. The country has bought 12 P-8I so far and has already placed an order for 6 more. It is used for surveillance in the Arabian Sea, Indian Ocean and the Bay of Bengal. Its most dangerous capability is to track submarines hidden inside the sea. Before Operation Sindoor, P-8I aircrafts were seen flying continuously in the Arabian Sea which led many experts to believe that the Indian Navy was detecting the presence of Chinese submarines in the Arabian Sea. Considering the US Navy, both the F-35C stealth fighter jet and the P-8A play a very important role in America's strategic advantage in the Indo-Pacific. But the loss of these aircraft is raising serious questions about the preparedness of the US Navy. Currently, the US Navy has not expressed its desire to buy any new aircraft to replace the crashed P-8A aircraft, but repeated accidents of the F-35C stealth fighter jet have raised questions about the credibility of the world's most expensive fighter aircraft program. This comes after another F-35C of the Royal British Navy was stranded in Kerala for weeks after breaking down earlier.
