Eight Boeing P-81 spy planes are already deployed in the India Ocean, tracking movements of submarines. Some aircraft have been deployed in the remote Andaman and Nicobar islands near the Malacca Straits and two other routes into the Indian Ocean for military purpose as well as commercial shipping. Boeing last year completed the delivery the last of the aircraft under the previous order worth $2.1 billion.
The latest deal is a follow-on purchase was signed during the visit of US Under Secretary of Defense for Acquisition Frank Kendall.
The deal is seen as a manifestation of India's attempt to further bolster its naval capability as they are under immense pressure to check the Chinese presence in the Indian Ocean, following China's deployment of a nuclear-powered boat that is reportedly currently docked in Sri Lanka.