Reports on India halting US def deals talks false: Govt

New Delhi: The Centre has put on hold its plans to procure new US weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump dragged ties to their lowest level in decades, reports news agency Reuters.

Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved, following his administration's decision to double tariffs on Indian imports.

Later, The Ministry of Defence dismissed media reports claiming that India has paused discussions on defence purchases from the United States

India had been planning to send Defence Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been cancelled, two of the people said.

Trump on August 6 imposed an additional 25 per cent tariff on Indian goods as punishment for Delhi's purchases of Russian oil, which he said meant the country was funding Russia's invasion of Ukraine. That raised the total duty on Indian exports to 50 per cent - among the highest of any US trading partner.

The president has a history of rapidly reversing himself on tariffs and India has said it remains actively engaged in discussions with Washington. One of the people said the defence purchases could go ahead once India had clarity on tariffs and the direction of bilateral ties, but "just not as soon as they were expected to." Written instructions had not been given to pause the purchases, another official said, indicating that Delhi had the option to quickly reverse course, though there was "no forward movement at least for now."

India's defence ministry and the Pentagon did not respond to Reuters' questions. Delhi, which has forged a close partnership with America in recent years, has said it is being unfairly targeted and that Washington and its European allies continue to trade with Moscow when it is in their interest.

Reuters is reporting for the first time that discussions on India's purchases of Stryker combat vehicles made by General Dynamics Land Systems and Javelin anti-tank missiles developed by Raytheon and Lockheed Martin have been paused due to the tariffs.

Trump and Prime Minister Narendra Modi had in February announced plans to pursue procurement and joint production of those items. Singh had also been planning to announce the purchase of six Boeing P8I reconnaissance aircraft and support systems for the Indian Navy during his now-cancelled trip, two of the people said. Talks over procuring the aircraft in a proposed $3.6 billion deal were at an advanced stage, according to the officials.

Boeing, Lockheed Martin and General Dynamics referred queries to the Indian and U.S. governments. Raytheon did not return a request for comment.

India's deepening security relationship with the US, which is fuelled by their shared strategic rivalry with China, was heralded by many US analysts as one of the key areas of foreign-policy progress in the first Trump administration.

India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the US, if it can get similar prices, according to two other Indian sources.