India’s Commerce Minister Piyush Goyal has clarified that the $500 billion figure for imports from the US over five years reflects India’s growing commercial needs, not a firm commitment under the new trade framework.
Goyal emphasized that India “intends to” source goods from the US where it makes sense, but there is no obligation to buy a fixed annual amount. Decisions will depend on price, quality, and demand.
The estimate comes from India’s rising import requirements, expected to reach $2 trillion over five years. Key sectors include energy (crude oil, LNG, LPG), aviation (aircraft, engines, spare parts), technology products, precious metals, and coking coal.
India already has aircraft orders with Boeing worth $50 billion, and future aviation needs could push imports to $80–100 billion. Similarly, growing tech infrastructure, data centres, AI, and quantum computing, will drive demand for high-end US products.
Goyal noted that India currently imports about $300 billion of goods that could come from the US. He described the $500 billion figure as conservative, reflecting intent to diversify supply chains rather than any enforced quota.
The interim trade framework also reduces tariffs and gives Indian exporters better access to the US market, benefiting sectors such as pharma, gems and jewellery, and labour-intensive industries.
The clarification addresses concerns that India might be forced into higher imports, reassuring that sensitive sectors like agriculture and dairy remain protected.
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