India to buy $500 billion of US goods in 5 years as new trade deal cuts tariffs
India's USD 500 billion buying plan will anchor the interim trade framework, as New Delhi will cut tariffs on US goods and Washington will lower duties on Indian exports to 18 per cent under the proposed bilateral pact.
India has lined up purchases of about USD 500 billion worth of American goods over the next five years, spanning energy, aircraft and parts, precious metals, technology items and coking coal, as New Delhi and Washington push to reset trade ties.
The plan was outlined in a joint statement released after India and the United States unveiled a framework for an interim trade agreement, aimed at reviving momentum toward a full bilateral pact following months of talks and tariff frictions.
As part of the framework, United States President Donald Trump's tariffs on Indian goods will be brought down to 18 per cent.
Alongside large-scale purchases, both sides agreed to deepen trade in advanced technology. This will include higher volumes of Graphics Processing Units (GPUs) and other equipment used in data centres, along with expanded cooperation in critical tech sectors.
"India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years," the statement said.
The framework also addresses digital trade barriers. India and the US said that they are committed to tackling what they called discriminatory or burdensome practices and to creating a pathway for "robust, ambitious and mutually beneficial" digital trade rules under the eventual Bilateral Trade Agreement (BTA).
Both countries said they would promptly implement the framework and work toward finalising the interim pact, keeping the longer-term goal of a comprehensive BTA in focus.
On market access, India has agreed to cut or scrap tariffs on all US industrial goods and a wide range of farm products. These include dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
In return, the United States will lower its reciprocal tariff rate to 18 per cent on Indian exports and remove duties on select items such as generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to the deal being finalised.
India has lined up purchases of about USD 500 billion worth of American goods over the next five years, spanning energy, aircraft and parts, precious metals, technology items and coking coal, as New Delhi and Washington push to reset trade ties.
The plan was outlined in a joint statement released after India and the United States unveiled a framework for an interim trade agreement, aimed at reviving momentum toward a full bilateral pact following months of talks and tariff frictions.
As part of the framework, United States President Donald Trump's tariffs on Indian goods will be brought down to 18 per cent.
Alongside large-scale purchases, both sides agreed to deepen trade in advanced technology. This will include higher volumes of Graphics Processing Units (GPUs) and other equipment used in data centres, along with expanded cooperation in critical tech sectors.
"India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years," the statement said.
The framework also addresses digital trade barriers. India and the US said that they are committed to tackling what they called discriminatory or burdensome practices and to creating a pathway for "robust, ambitious and mutually beneficial" digital trade rules under the eventual Bilateral Trade Agreement (BTA).
Both countries said they would promptly implement the framework and work toward finalising the interim pact, keeping the longer-term goal of a comprehensive BTA in focus.
On market access, India has agreed to cut or scrap tariffs on all US industrial goods and a wide range of farm products. These include dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
In return, the United States will lower its reciprocal tariff rate to 18 per cent on Indian exports and remove duties on select items such as generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to the deal being finalised.