$3.5 Billion Bet: India Pushes Through P-8I Spy Aircraft Deal with US | Exclusive

Despite the "prohibitive" increase in the price of the P-8I Poseidon Maritime Reconnaissance aircraft, India is going ahead with the purchase of six of them from the United States of America on the FMS or Foreign Military Sales route. India has been holding out for over a year, negotiating with the United States of America, saying the costs of each plane now (between $500-$600 million) was too high. When India purchased the first eight P8Is for the Navy, the entire deal was valued at $2.1 billion, but the manufacturers (Boeing) have said that the supply-chain problems have led to a rapid increase in costs. So, these six could cost over $3.5 billion or more. The note for the Cabinet Committee on Security, chaired by Prime Minister Narendra Modi,

should be ready by May, highly-placed sources said.

"We have been waiting for a long while. We have also been negotiating with them, but the costs are what they are. And they (Boeing) are selling them to others at roughly the same price. So, there is nothing that can really be done. The supply-chain issues are very much there," sources added. Currently, the Indian Navy has a dozen P8Is, the first eight bought in 2009 and then, four more in 2016. The Navy uses them for maritime reconnaissance, and during the stand-off with the Chinese People's Liberation Army in the Himalayas five years ago, they were even used in Ladakh for surveillance. The P8I can be used for anti-submarine warfare and also, against surface ships. The plane is called the P8I, the "I" standing for India as it has several modifications as per the requirements of the Indian Navy. "We are going for them as there is no equivalent aircraft, no aircraft that can do so many things at the same time," a senior official said. The dozen that India has have performed quite well.

While the P8I will go through, the Stryker armoured vehicle under discussion between India and the USA is "off," sources said as the armed forces do not seem keen on it. The Army is also keen on a limited number of US Javelin anti-tank missiles, some of which have come as part of the emergency purchases.