India's Plans to Acquire 6 More P-8I Maritime Aircraft May Face Budget Constraints as US Increased Unit Price by 50%

India's critical plan to enhance its maritime surveillance capabilities is facing significant financial headwinds.

The proposed acquisition of six additional P-8I Poseidon long-range patrol aircraft from the United States has been complicated by a steep 50% price increase, pushing the total cost to an estimated $3.6 billion.

The United States has attributed the sharp rise in cost to global supply chain disruptions and increased production expenses, a position on which it has shown little flexibility.

This development has presented the Indian government with a difficult choice: absorb the higher cost to meet the Navy's strategic requirements or reduce the number of aircraft to be purchased, with discussions reportedly considering an acquisition of five planes instead of the original six.

The P-8I aircraft, a specialised variant of the U.S. Navy's P-8A Poseidon manufactured by Boeing, is a cornerstone of the Indian Navy's maritime strategy.

It is renowned for its advanced capabilities in anti-submarine warfare (ASW), anti-surface warfare (ASuW), and intelligence, surveillance, and reconnaissance (ISR).

These aircraft are vital for monitoring the vast expanse of the Indian Ocean Region (IOR), particularly in response to the growing and increasingly sophisticated presence of China's naval forces.

India currently operates a fleet of twelve P-8I aircraft, which have been instrumental in security operations since their induction began in 2013. Based at INS Rajali in Tamil Nadu and INS Hansa in Goa, the existing fleet has surpassed 40,000 operational flight hours.

Equipped with state-of-the-art sensors, including the APY-10 surveillance radar and magnetic anomaly detectors for submarine detection, and armed with Harpoon anti-ship missiles and MK-54 torpedoes, the P-8I serves as a powerful deterrent.

The Indian Navy has consistently projected a requirement for a total of at least 18 of these aircraft to ensure comprehensive surveillance coverage of its maritime areas of interest.

This need has become more acute following the official retirement of the Navy’s ageing fleet of Soviet-origin Ilyushin Il-38 Sea Dragon patrol aircraft in 2023, which served for 46 years. The six new aircraft are intended to fill this capability gap.

The deal for the additional planes, which the U.S. State Department had initially approved in 2021 for a cost of $2.42 billion, was previously delayed.

The Indian Ministry of Defence had put the acquisition on hold, citing the high cost and a desire to align with the 'Aatmanirbhar Bharat' initiative, which prioritises indigenous defence manufacturing.

However, strategic imperatives, chiefly the need to counter China’s naval expansion in the IOR, have brought the procurement back into focus.

The current price standoff occurs as India juggles several other high-value defence projects, including a recent deal for 26 Rafale Marine fighter jets.

In a sign of blending foreign platforms with local technology, the Navy has also begun integrating its indigenously developed Naval Anti-Ship Missile–Medium Range (NASM-MR) onto the existing P-8I fleet.

Negotiations are further complicated by broader geopolitical dynamics. The deal is seen as a key component of the deepening India-U.S. Major Defence Partnership, which both nations view as crucial for stability in the Indo-Pacific.

Reports suggest that New Delhi may leverage its requests for the emergency procurement of other American-made military hardware, such as Excalibur precision-guided munitions, as a point of negotiation to seek more favourable terms or faster delivery schedules for the crucial P-8I aircraft.

 

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[Mc Addy]

Cost is no matter if matters involve national intrest and defense of country , we are now open to war anytime so what 50% increase will do . Get it

 

[Hawkeye]

This is what happens when you delay all the procurements. We just need to negotiate harder, buy something else from them. There are many examples; we dragged F-404 and C-17 until Americans closed the production lines.

 

[Anonymus]

If the Navy and government are facing budget issues, then they can reduce P-8I numbers according to their requirement and budget. For the rest, we can also use C-295 MPA, as these are also good for ASW and cost $116 million per plane compared to the $600 million P-8I. On top of that, we are manufacturing C-295 in India itself.

The C-295 MPA is one of the top five ASW planes active in the world; many European countries are even replacing their P-3 Orion with the C-295 MPA.

If the Navy wants to spend $3 billion on ASW😛-8I: 3 P-8I ($1.8 billion approx.)C-295 MPA: 10 C-295 MPA ($1.2 billion approx.)

15 P-8I + 10 C-295 + 24 MH-60 will be enough to guard Indian shores, and in the future, DBMRH is also under consideration, so it's okay.

 

[abhinav srivastava]

Procure for immediate needs, but our requirement is for 18+ for the entire IOR. We have developed technologies for CABS designed Netra Mk3. Can't we use our expertise to convert an A330 Neo-like aircraft into a long-range maritime reconnaissance aircraft?

If feasible, consider the A330 Neo for developing both AWACS and long-range maritime reconnaissance aircraft. The A330 MRTT is also a refueller variant of this aircraft.

Also, check with Indian aircraft carriers if they are willing to order the A330 Neo. In the past, they wanted to order it. Given the size of the Indian aviation industry, an order of a few hundred A330s is very much feasible. Tatas are already assembling Airbus C295s; facilitate/incentivise them to do similar for the A330 Neo and MRTT.

 

[Kira]

Since the price cited was back from 2021 when COVID had dampened demand and thus reduced prices, it's only natural that prices will balloon after four years as inflation in the US has risen considerably since then. So, it's natural that prices would notably increase, and it's the fault of MoD that they failed to secure the deal back in 2021. After all, the need for 6-8 more Poseidons was not new or insignificant.

 

[Baiju Bhaskaran]

Why can't we use C295 and put all the surveillance and weapons integration into it.

 

[SK]

It's better to convert the civilian Boeing 737 or Airbus A320 for MPA roles.

If these converted civilian-to-MPA aircraft will have lower performance than P-8I, they can still free the P-8I to focus on more strategic or important missions.

 

[nara]

India should use its own planes, even if a jugaad, and its own technology for such missions. Instead of a few P-8Is, 20-30 smaller planes constantly flying for shorter durations, fitted with all types of gizmos, should do. I think we keep missing the big story every time and just buy things just because.

 

[Abhijit Roy]

Ideal would be a fleet of 12 Kawasaki P-1s whose per-unit cost is around 175-190 million dollars, compared to the P-8I, pegging around 560+ million dollars currently after price increases. With a budget of 3 billion dollars, the Indian Navy could easily procure 12 units or more along with necessary subsystems, which are comparable or somewhat equal along with some added benefits like a fly-by-optics system.

 

[Diganta Ghosh]

I feel the same will also be for C-17. Although, P-8I and C-17 are both value for our buck. This is a major mirror to our delayed import modular procurement. Even if DRDO is developing the C-295 Maritime Version, I don't think it will be near the P-8I capability that is offered to the Indian Navy. If the Navy and DRDO reaffirm that the C-295 Maritime will somehow compensate for the remaining 6 needed P-8I, then going for C-295 Maritime will be both cheaper and better. Although, how much will C-295 Maritime be in comparison to P-8I is the main question, primarily due to airframe constraints.

 

[coke]

Why can't DRDO and the Navy make their own P-8I aircraft? How long will the Navy continue to buy from the USA?

 

[Bhishma]

How difficult is it to build these things in-house? It's just an airborne torpedo platform. Why can't we take a transport aircraft and employ them for this role?

The US is going through a severe economic crisis. Their F-35 chances are gone with that recent Kerala fiasco. Of course, they will jack up the prices wherever they can.

 

[Sandeep]

India should not cave in and simply pay them whatever as all they want is more money. India is the largest operator of these planes and we can make do without buying more expensive foreign imports. These planes are mostly needed to detect submarines and we already have sufficient resources like drones, helicopters, maritime patrol planes, naval ships and satellites that can monitor what ships enter our ocean via the shipping lanes.

Also we already made a deal to buy the MQ9 maritime drone which can detect submarines and naval ships. The drones will be armed with the same weapons we use on the plane. Also drones are less expensive to operate and maintain compared to large planes like the P8I.

 

[Pankaj]

Looking at the cost factor, we should avoid new purchases and instead work on indigenous underwater vehicles. We already have a few P-8I aircraft. The upcoming confrontations will involve more unmanned equipment, hence there is no need to invest huge money in purchasing another batch of P-8Is. By the time we get the new P-8Is, they will be nearly obsolete as the next generation of submarines will be more stealthy and complicated. Until now, the P-8I has not proved its mettle in a contested environment. So, investing heavily in this procurement will not make any sense. It's better to work on MALE and HALE class UAVs with the GTRE's newly announced 10kN engine development. The government must fast-track and fund the GTRE engine development program.

 

[Krishna]

Leave the US. They are an unreliable country. We should build an indigenous aircraft for this purpose. In any case, this Trump guy is the biggest problem. He can't become president again after this term. Hope a better person comes to power, which might improve our relations. In any case, indigenous development is the way to go. It takes time, but in the long run, it is better for us.