India Freezes $3.6B US Arms Deal; Defence Minister Cancels Washington Visit
India has put a hold on plans to purchase advanced weapons and aircraft from the United States in a deal worth $3.6 billion. This move represents the first significant consequence following Washington's decision to increase tariffs on Indian exports. According to a Reuters report citing multiple sources, this development has also led to the cancellation of Defence Minister Rajnath Singh's upcoming visit to Washington.
The proposed acquisition included Stryker combat vehicles from General Dynamics, Javelin anti-tank missiles developed collaboratively by Raytheon and Lockheed Martin, and six Boeing P8I reconnaissance aircraft intended for the Indian Navy. These purchases were supposed to be announced during Singh's planned visit.
This diplomatic friction follows US President Donald Trump's decision on August 6 to impose an additional 25% tariff on certain Indian goods. The tariffs, which are linked to India's imports of Russian oil, raise the total duty to 50%, making it one of the highest imposed on any US trade partner.
Officials informed Reuters that although Trump has a record of reversing tariff measures, discussions on defense procurement will remain paused until there is clarity on trade policy and the overall direction of bilateral relations. One official remarked, "For now, there has been no forward movement."
India has criticized the tariff imposition as unfair, noting that the US and European countries continue their trade with Moscow when it aligns with their interests. Despite this discord, the fundamental defense relationship between the US and India, including intelligence sharing and joint military exercises, remains unaffected.
As the world's second-largest importer of arms, India has traditionally relied on Russia for military hardware. However, it has been diversifying its sources in recent years, looking towards suppliers like the US, France, and Israel. While Russia continues to woo India with offers such as the S-500 missile system, officials indicate that there are no immediate plans to purchase new Russian arms.
