Union Commerce and Industry Minister Piyush Goyal has clarified the $500 billion figure in the India-US interim trade agreement, emphasising that India does not face any binding obligation to purchase that amount from the United States.

Speaking to ANI on 8 February 2026, Goyal stated that the agreement reflects India's intent to procure products based on its expanding commercial needs, rather than enforced commitments.

He explicitly noted, "We don't have to. We intend to," underscoring that no specific quantities or values of goods are mandated.

Goyal highlighted key sectors driving this projected trade volume, including civil aviation, where India already holds Boeing orders worth around $50 billion for aircraft, engines, and spare parts.

He estimated civil aviation-related imports could reach $80-100 billion, focusing solely on commercial requirements, as trade agreements exclude defence matters.

India's steel production expansion from 140 million tons to 300 million tons will boost coking coal demand, potentially rising from $17 billion to $30-35 billion annually.

Goyal pointed out that multiple suppliers, including the US, would enable better negotiations and competitive pricing. Energy imports, such as crude oil, LNG, and LPG, continue to grow at 6-8% or 8-10% annually to meet India's rising needs.

Emerging areas like data centres, artificial intelligence, and quantum computing will drive demand for ICT products, including GPUs.

Currently importing $300 billion yearly in such goods globally, India anticipates needing $2 trillion over the next five years, with the US well-positioned to supply high-quality items at competitive rates.

The minister stressed that purchases will prioritise value and quality, distinguishing firm intent from legal obligation.

This clarification addresses opposition scrutiny over the joint statement, which outlined India's intention to buy $500 billion in US energy products, aircraft parts, precious metals, technology, and coking coal over five years.

The agreement also pledges to enhance trade in technology products and foster joint cooperation.

Based On ANI Report