In 2021, a deal worth $2.42 billion was signed with the united states to purchase 6 Boeing P-8I jets for the indian Navy. These jets are crucial for maritime patrol, surveillance, and detecting enemy submarines. However, after the deal was signed, the price of these jets increased by 50% due to new import duties (tariffs) imposed by the US government. Although some of the raw materials required for these jets are sourced from india, the tariffs imposed by the US took the total contract value to $3.6 billion. The indian government did not accept this huge price increase. india was not ready to pay such a large amount at once without any changes in the trade agreement. By this decision, india not only avoided the financial burden but also sent a strong message against the US's unilateral tariff policies.
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The main idea behind this development is clearly the "Aatmanirbhar Bharat" (self-reliant India) mission. The main objective of this mission is to increase the production capacity in the defense sector domestically without relying on the purchase of weapons and defense equipment from abroad. By cancelling the Boeing jet deal, india has sent a clear signal to its domestic defense industries. This decision shows that india is working hard to meet its defense needs domestically to avoid such situations in the future. india, which is one of the world's largest arms importers, is now reducing its imports and giving priority to domestic manufacturing. This is a revolutionary change in India's defense policy.International analysts believe that this decision is not just commercial, but will also have a serious impact on the defense relations between the US and India. They warn that since the US is imposing tariffs on its allies, countries like india are likely to explore alternative markets in South Asia. Such a decision by a strategic partner like india has become a challenge for the US. This may lead to the US reconsidering its tariff policies in the future. india can now establish closer defense relations with countries like Russia, France, and Israel. These countries will be ready to supply weapons at low prices and also transfer technology. Such incidents can damage the trust between the two countries to some extent. Since defense agreements are highly sensitive, taking unilateral decisions on them can affect the future partnership.
India has responded strategically to the US tariffs by suspending the Boeing deal. With this decision, india has not only protected its economic interests but also demonstrated its commitment to the goal of 'Aatmanirbhar Bharat'. This is a crucial step in US-India relations. It remains to be seen how these developments will unfold in the future, especially how the partnership between the two countries in the defense sector will be transformed.
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