In New Delhi, on February 8, Commerce Minister Piyush Goyal stated that India can easily purchase goods worth $500 billion from the US over the next five years, as envisioned in the bilateral trade agreement. He described this figure as "extremely conservative" for a country aiming to have a $30 trillion economy.
Goyal emphasized that, in addition to oil, LNG, LPG, and crude oil, India would also need at least $100 billion worth of aviation products.
According to a joint statement issued by both sides on Saturday, 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.
Goyal noted that Indian goods, facing 18% tariffs, would still have a competitive advantage in the US market compared to products from China and other countries, which face higher tariffs.
He also stated that India currently imports around $300 billion worth of goods from the US.
Goyal highlighted that the country's economy is growing rapidly, increasing demand for a variety of goods, including semiconductors, high-end machinery, and data center equipment, as well as aircraft, aircraft parts, and energy goods.
He further stated that India currently imports approximately $40-50 billion worth of goods from the US annually.
Citing examples where purchases from the US can be enhanced, Goyal mentioned that major tech firms have announced significant investments in India, and therefore, "we will see 10 gigawatts of data centers" in the country, for which India will need equipment that the US can supply.
He added that India already has orders for $50 billion worth of Boeing aircraft, and there are also orders for engines.
Goyal also stated that approximately $80-90 billion is already ordered for the next five years, and that India will likely need more.
Further, Goyal highlighted that India requires coking coal for its steel industry, and that India is already importing about 17-18 billion tonnes of coking coal.
He added that when India reaches $300 billion, which is the target, the steel industry will experience rapid expansion, and that India will need $30 billion per year for coking coal alone.
Goyal emphasized that all of the products mentioned are already being imported, and that nothing new is being introduced.
He also stated that the demand for these products is increasing, and that the budget has announced plans to promote data centers, the AI mission, and critical manufacturing and critical minerals processing in India.
He added that India has the most powerful technology provider, the United States, and that $100 billion per year is a very conservative estimate for a country aiming for a $30 trillion economy.
Goyal also clarified that the $500 billion purchase plans from the US include orders that India has already placed for Boeing aircraft.
He further stated that India's reciprocal tariffs are now among the lowest compared to its competitor nations.
These countries include China (35%), Thailand (19%), Myanmar (40%), Cambodia (19%), Bangladesh (20%), Indonesia (19%), Brazil (50%), and Vietnam (20%).
With lower tariffs, India's labor-intensive sectors, such as textiles, leather and footwear, handicrafts, chemicals, and gems and jewellery, will be more competitively priced in the US market compared to these nations.
Goyal also emphasized that India has adequate safeguards in the trade agreement to protect the interests of farmers and the domestic industry from any increase in imports.
He added that the trade deal with the US will "ultimately help our farmers," who are already exporting $50-55 billion worth of agricultural and fish products.
Goyal also stated that the India-US joint statement is a two-page document, and that both countries have sensitivities about a certain set of products, and both have safeguards for those.
