The Indo-US defence deal for the procurement of ten Boeing C-17 heavy-lift transport aircraft worth $4.1bn has been deferred over pricing issues, according to Indian Defence Ministry sources.

The deal was scheduled to be cleared by the Indian Cabinet Committee on Security in March, but will not proceed until the US has clarified whether India has been charged more than other countries.

The US charged India $410m for each aircraft but Indian officials believe Australia was charged $300m per airplane.