Inside the Stalled P8I Deal: Why India Is Saying 'NO' to America’s Sky-High Price Tag

The negotiations between the United States and India regarding the acquisition of 6 P-8I maritime surveillance aircraft for the Indian Navy are stuck, the disagreement being over the price. "They are not budging on cost. They are saying it is not possible to reduce the price as there are supply chain difficulties," highly placed sources said. The Indian government believes the price being asked for is too high-- a nearly 50 per cent markup, and therefore, considerably more than the unit cost at which they were purchased earlier. The Navy has a dozen P8Is, made by Boeing and they have been very successful. They are largely used in a maritime surveillance role, though they could be used for anti-submarine warfare as well. The sale of the first

eight were agreed upon in 2009, with the first one coming three years later. Then, four were agreed upon in 2016, the first coming four years later. Then, after discussions about an additional ten, six were decided upon by the Navy. They came along with a consignment of torpedoes and anti-ship Harpoon missiles. The P8I was even used for surveillance during the Doklam crisis in 2017 along the Line of Actual Control besides its other efforts. A team of US government officials and manufacturers were here earlier this year but could not find common ground. While the Navy is very keen on the P8I and the problem appears to be the cost, there is less enthusiasm for the Stryker armoured fighting vehicle, which the Indian army wanted for amphibious warfare. There have been trials in Alaska, but currently, there is very little chance of the acquisition process going through. For the Excalibur precision guided artillery shell and the Javelin anti-tank missile, there is considerable positive feeling. The Excalibur could be co-produced in India, with Bharat Dynamics being the partner. Meanwhile, the Indian Army has said it is buying the Javelin, which has a range of over 2,500 metres as part of the Emergency Procurement programme. It is a tried and tested weapon, made by Raytheon and Lokheed Martin and manportable, being comparably light. But the Emergency Procurement allows for small purchases and so far, 12 launchers and 104 missiles have been purchased.