New Delhi [India], February 8 : Noting India's growing commercial requirements in the aviation sector, Union Commerce and Industry Minister Piyush Goyal estimated that the country requires nearly USD 80 to 100 billion worth of products related to civil aviation, highlighting the country's expansion in the aviation market.
In an interview with ANI on the recently concluded India-US interim trade agreement framework, Goyal said India's expanding civil aviation market would drive significant demand for aircraft, engines, and spare parts in the coming years.
"Planes are required by India. We already have orders of USD 50 billion to Boeing for planes, plus orders for engines, plus orders for spare parts. I suspect we'll need anywhere between USD 80 and 100 billion of just civil aviation-related products," he said.
The Union Minister also underscored India's rapidly growing demand for information and communication technology (ICT) products, driven by the expansion of data centres and the development of artificial intelligence and quantum computing capabilities.
He noted that India currently imports ICT and related products worth around USD 300 billion annually from global markets, and that over the next five years, estimated imports would reach USD 2 trillion.
"We are setting up data centres. We are developing the AI and quantum computing economy in a big way. All of these will require huge amounts of ICT products. When we estimate these products. Currently, we are already importing USD 300 billion a year of these products from different parts of the world. In the next five years, we estimate we will need USD 2 trillion of these products, and America has very good capabilities and capacity to support the Indian economy with high-quality products at competitive prices," he stated.
He also clarified the USD 500 billion figure in the India-US interim trade agreement, noting that India doesn't have to, but "intends to purchase" products worth that amount, and that there is no binding purchase obligation under the framework.
Goyal added that the interim trade understanding does not require India to purchase specific quantities or values of goods from the US, noting that estimates are based on India's growing commercial needs.
"We hope they will offer us very competitive prices. We intend to purchase a good volume of these products out of our USD 2 trillion imports. But the intent is different," the Commerce Minister added.
The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.
As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.
India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.