India to Boost U.S. Goods Purchases to $500 Billion in Five Years

India aims to purchase goods worth $500 billion from the United States over the next five years, according to Union Minister of Commerce and Industry Piyush Goyal. Speaking on 8 February 2026, he described this target as conservative, given the substantial demand anticipated in India's growing economy, which could reach $2 trillion in imports by that time.

Goyal explained that currently, India imports about $300 billion worth of goods from various sources that could be sourced from the U.S. He highlighted that this agreement represents a significant opportunity to strengthen bilateral trade relations and expressed confidence in India's economic expansion.

The framework for this trade agreement was outlined in a joint statement released on 7 February 2026. It includes intentions to purchase a variety of U.S. products, including energy resources, aircraft and their components, precious metals, technology items, and coking coal over the coming years. Specifically, Goyal mentioned that at least $100 billion would be needed solely for the aviation sector, in addition to significant amounts for oil, liquefied natural gas, liquefied petroleum gas, and crude oil.

"My sense is that we need at least a $100 billion plus just for the aviation sector," Goyal said. The Minister noted that the demand for U.S. products is also being driven by large investments from major technology firms seeking to establish data centres in India. He estimated that India could need around 10 gigawatts of data centre capacity in the future, necessitating equipment that the U.S. can provide.

Goyal stated, "We are going to need aircraft, and we already have a $50 billion order with Boeing for planes and engines. This comes as part of the greater $80-$90 billion in orders expected in the next five years." He raised the point that India is already importing coking coal for its steel industry, highlighting the requirement of around $30 billion annually as Indian steel production expands.

Additionally, Goyal underscored the need for high-quality machinery and technology in sectors such as artificial intelligence and quantum computing, emphasizing that these products will primarily come from the United States, the leading technology provider worldwide.

On import tariffs, Goyal noted that Indian goods with tariffs of 18% still enjoy a competitive edge in the U.S. market compared to those from China, which face higher levies. He stated that reciprocal tariffs for India are significantly lower than those of many competing nations, with China's tariffs around 35% and those from countries like Thailand, Bangladesh, and Vietnam ranged between 19% and 50%.

Given the anticipated exponential growth in demand for various products, Goyal believes the proposed purchase figures are justified. "For a country aspiring to become a $30 trillion economy, this estimate of $100 billion is extremely conservative," he concluded, highlighting the ambitious goals set for India's future economic landscape.