Washington, Feb7: India has announced a plan to purchase $500 billion worth of goods from the United States over the next five years, spanning sectors such as energy products, aircraft and aircraft parts, precious metals, technology products and coking coal, according to a joint statement by the two countries.The move forms part of a broader India-US trade deal framework aimed at deepening economic ties and reducing trade barriers between the world’s two largest democracies. Under the understanding, the United States has agreed to lower reciprocal tariffs on Indian goods—bringing duties down to about 18 per cent from previously much higher levels—while India will expand its sourcing of American merchandise.
Commerce officials said the planned purchases will include a mix of existing contracts and new procurement needs, reflecting India’s growing demand for energy, aviation equipment, advanced technology and industrial inputs. A formal trade agreement is expected to be signed by mid-March 2026, after which tariff reductions and other measures are likely to be implemented.