In the backdrop of recent indications of fresh momentum in Indian-American trade negotiations, a US defense delegation and representatives from American aircraft maker Boeing are set to travel to India next week to discuss a multi-billion-dollar contract for the sale of patrol aircraft.
A report by Bloomberg states that officials from the US Department of Defense and Boeing are scheduled to arrive in India in the coming days to negotiate the $4 billion deal for six P-8I naval patrol aircraft, which has been on hold.
The visit's timing has come as US President Donald Trump asserted that negotiations over trade with India are underway, and Prime Minister Narendra Modi has called the two countries "natural partners and close friends.
The trade talks had earlier stalled following Trump's imposition of a 25% duty on Indian exports to America, and then an added 25% duty on India's crude oil business with Russia, making the total duty 50%.
India-US defence agreements: P-8I naval aircraft in focus
Bloomberg says the talks in the future will focus on India's proposal to buy six P-8I naval patrol aircraft. Even though the procurement was approved in 2019, negotiations were delayed in the following years.
India previously acquired eight P-8Is under a deal worth $2.2 billion in 2009 and four more planes were added a decade later. The planes, based in Tamil Nadu, perform vital surveillance operations over the Indian Ocean and strategic sea routes.
The proposed US delegation trip is quoted by Bloomberg as an indicator of ongoing bilateral cooperation concerning defence issues, in spite of current trade tensions. These purchases may also serve to alleviate the US trade deficit with India and align with Trump's expressed priorities.
India, the second-largest arms importer in the world, has significantly cut its dependence on Russian defence gear, the report observes. Russian defence imports captured just 36% of India's total defence imports last year, compared with 76% in 2009, as per the Stockholm International Peace Research Institute.
Meanwhile, India has strengthened its defence relations with the US, finalising deals worth approximately $20 billion since 2018, according to the US Congressional Research Service. In October, India signed off on the acquisition of 31 long-range drones from US defence company General Atomics worth more than $3 billion.
