India's Union Commerce and Industry Minister Piyush Goyal has projected a substantial demand for civil aviation products, estimating needs between $80 billion and $100 billion. Speaking on the newly concluded India-US interim trade agreement, he highlighted the country's burgeoning aviation sector as a key driver.

This demand encompasses aircraft, engines, and spare parts, building on existing orders worth $50 billion from Boeing alone.

Goyal also emphasised India's escalating requirements in information and communication technology (ICT) products, fuelled by expansions in data centres, artificial intelligence, and quantum computing. 

Currently, India imports around $300 billion annually in such goods from global sources. Over the next five years, he forecasts a staggering $2 trillion in imports, presenting significant opportunities for American suppliers offering high-quality products at competitive prices.

The minister clarified the $500 billion figure referenced in the interim trade framework, stressing that it represents India's intent to purchase, rather than a binding obligation. This commitment covers US energy products, aircraft and parts, precious metals, technology goods, and coking coal over five years. 

Goyal expressed optimism that competitive pricing from the US would enable India to source a substantial portion from its $2 trillion import pipeline.

Under the agreement, India has pledged to eliminate or reduce tariffs on all US industrial goods and a broad array of agricultural and food products. These include dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits, and more.

In reciprocity, the US will apply an 18 per cent tariff on various Indian exports such as textiles, apparel, leather, footwear, plastics, rubber products, organic chemicals, home décor, artisanal goods, and certain machinery.

The US has committed to lifting these reciprocal tariffs on select Indian items upon successful implementation, including generic pharmaceuticals, gems, diamonds, and aircraft parts. Additionally, tariffs on certain Indian aircraft and parts—previously imposed for national security reasons—will be removed.

This framework reaffirms both nations' dedication to a comprehensive Bilateral Trade Agreement, initially launched by President Donald Trump and Prime Minister Narendra Modi on 13 February 2025.

Based On ANI Report