Has India Committed To Buying Products Worth $500 Billion From US? Piyush Goyal Explains Logistics

Last Updated:February 09, 2026, 07:59 IST

The commerce minister said India would increasingly buy from the US where it can be a preferred supplier, particularly in high-value areas such as advanced ICT products and GPUs

Commerce and Industry Minister Piyush Goyal has said India sees “no difficulty" in sourcing goods worth $500 billion from the United States over time, as the two countries move closer to formalising a trade deal that will cut tariffs on a large share of Indian exports.

Speaking to CNBC-TV18, Goyal said India would increasingly buy from the US where it can be a preferred supplier, particularly in high-value areas such as advanced ICT products and GPUs, apart from energy imports and aircraft. “We already have over $80 billion worth of aircraft and equipment orders, and this is set to increase. Energy imports from the US, including coking coal, will also rise significantly," he said.

The comments come as the White House is expected to issue an executive order next week bringing down reciprocal tariffs on Indian goods to 18 per cent. Exporters will be able to avail of the reduced tariffs from the date the order comes into effect. The interim trade deal is expected to be signed by mid-March, with US Trade Representative Jamieson Greer likely to visit New Delhi for signing the legal text.

Zero Duty For Half Of India’s Exports

According to Goyal, around 50 per cent of India’s exports to the US will enjoy zero-duty access under the interim framework. Roughly 35 per cent of exports will face an 18 per cent tariff, while 10-15 per cent of items, including steel and aluminium, will continue to be subject to Section 232 sectoral tariffs that can go up to 50 per cent.

“The signed agreement will be a complete legal document, including zero-duty concessions," Goyal said, adding that India would take up the issue of Section 232 tariffs as part of the broader negotiations for a full bilateral trade agreement (BTA).

Red Lines Protected

Rejecting Opposition criticism, Goyal said India’s “red lines" had been fully protected and alleged that vested interests were misleading farmers. “All dairy items, poultry, meat, rice, wheat, sugar, soya, corn, millets, bananas, green peas, kabuli chana and all GM products are completely out of the trade deal," he said. Fruits such as bananas, cherries, strawberries and citrus fruits, along with honey, ethanol for fuel and tobacco, have also been excluded.

Addressing concerns raised by farmer bodies over soybean oil and DDG imports, Goyal said India was already importing soybean oil in large quantities and that GM characteristics are eliminated once products are processed.

On apples, he said domestic growers would remain protected. India imports around 5.5 lakh tonnes of apples annually, and US exports will be subject to a minimum import price of Rs 80 along with a Rs 20 duty, translating into a floor price about 33 per cent higher than apples from other sources.

Labour-intensive sectors and MSMEs are expected to be among the biggest beneficiaries. Textiles, machine parts, auto components, leather, footwear, sports goods, furniture, handicrafts and handloom products are likely to see immediate gains. Goyal said exports of farm and fish products could double from $54 billion to $100 billion, benefiting farmers and fishermen.

Products such as spices, tea, coffee, cocoa, citrus juices, banana pulp, avocados and shiitake mushrooms will get zero-duty access. India will also receive zero-duty treatment for gems and diamonds, clocks and watches, home décor items, aluminium and zinc oxides.

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