India 'ready' to buy $80B-worth Boeing aircraft after US deal
What's the story
India is ready to place orders for Boeing aircraft worth up to $80 billion, Commerce and Industry Minister Piyush Goyal reportedly said as New Delhi looks to expand its trade with the United States. "India's demand for aircraft alone...is nearly $80 billion," Goyal said, adding that if engines and other spare parts are included, imports from the US will exceed $100 billion just from aircraft.
Trade prospects
US to reduce tariffs on Indian goods
Goyal also highlighted the potential for India to procure at least $500 billion worth of goods from the US over the next five years. However, he clarified that no specific investment commitment was made in the trade deal with Washington. A week after India and the EU reached a trade deal, US President Donald Trump announced in a social media post that Washington and New Delhi had also agreed to a trade deal.
Deal
US will reduce tariffs on Indian goods
As part of the deal, he said the US will reduce tariffs on Indian goods from 25% to 18%. In return, New Delhi would reduce "their Tariffs and Non Tariff Barriers against the United States, to ZERO." Trump added that India had also committed to "BUY AMERICAN', at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."
Deal finalization
Joint statement expected in a few days
India and the US are expected to sign a joint statement in the next few days, finalizing the first tranche of their trade deal. The 18% tariffs on Indian exports to the US will come into effect after this joint statement is issued. A formal agreement will be signed in mid-March, at which point tariff concessions for US goods entering India will take effect.
Political scrutiny
Opposition accuses Modi of compromising on tariffs
Despite the announcement of this major trade deal, the Indian government has been tight-lipped about some details. This has led to opposition leader Rahul Gandhi accusing Prime Minister Narendra Modi of selling the nation and compromising on tariffs under pressure from the US. The government has not confirmed several claims made by US President Donald Trump regarding the trade deal, including zero duties on US goods and halting Russian oil imports.
Expert opinion
Experts skeptical about $500 billion import target from US
Experts have cautioned that the target of buying $500 billion worth of goods from Washington "seems a stretch." India's overall goods imports stood at $720.24 billion in the financial year 2025, with a trade deficit of $94.3 billion. The deal's announcement has sparked criticism and scrutiny over its feasibility and transparency, especially with Trump's claims seeming "unrealistic" given his history of raising tariffs despite trade agreements.