India to Import $500 Billion US Goods Under New Trade Deal

India has lined up purchases of around USD 500 billion worth of American goods over the next five years, covering sectors such as energy, aircraft and aircraft parts, precious metals, technology products and coking coal, as New Delhi and Washington move to reset and strengthen bilateral 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 trade pact after months of negotiations and tariff-related tensions.

Tariffs to Be Cut Under Interim Trade Framework

US Reciprocal Tariffs Reduced to 18%

As part of the framework, United States President Donald Trump’s tariffs on Indian goods will be brought down to 18 per cent. The move signals a partial easing of trade frictions that had weighed on exports and slowed progress toward a broader agreement.

The interim framework is intended to act as a bridge toward a comprehensive Bilateral Trade Agreement (BTA), with both sides committing to implement the agreed measures promptly.

India’s $500 Billion Import Commitment

The joint statement clearly outlines the scale of India’s planned purchases.

"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.

These purchases are expected to significantly deepen trade flows and rebalance bilateral commerce between the two economies.

Push to Deepen Advanced Technology Trade

GPUs, Data Centres and Critical Tech Cooperation

Alongside large-scale imports, India and the US have agreed to expand trade in advanced technologies. This includes higher volumes of Graphics Processing Units (GPUs) and other specialised equipment used in data centres, as well as broader cooperation in critical technology sectors.

The move aligns with growing demand for high-performance computing infrastructure driven by AI, cloud services and digital transformation across industries.

Digital Trade Barriers and New Rules

The framework also addresses long-standing concerns around digital trade barriers.

India and the US said they are committed to tackling what they described as discriminatory or burdensome practices and to creating a pathway for "robust, ambitious and mutually beneficial" digital trade rules under the eventual BTA.

This is expected to lay the groundwork for smoother cross-border digital commerce and technology collaboration.

Market Access: Tariff Cuts on Both Sides

India to Lower Duties on US Goods

On market access, India has agreed to cut or eliminate tariffs on all US industrial goods and a wide range of agricultural products. These include:

• Dried distillers' grains

• Red sorghum for animal feed

• Tree nuts

• Fresh and processed fruits

• Soybean oil

• Wine and spirits

US to Ease Duties on Key Indian Exports

In return, the United States will lower its reciprocal tariff rate to 18 per cent on Indian exports and remove duties on select products, subject to finalisation of the deal. These include:

• Generic pharmaceuticals

• Gems and diamonds

• Aircraft parts

The measures are expected to boost export competitiveness for Indian manufacturers and suppliers in high-value segments.

Roadmap Toward a Full Bilateral Trade Agreement

Both countries reiterated their commitment to finalising the interim pact while keeping the longer-term goal of a comprehensive Bilateral Trade Agreement firmly in focus.

The framework aims to expand market access, strengthen supply chains, enhance technology cooperation and reduce non-tariff barriers, marking a significant step toward deeper economic engagement between India and the United States.