India Can Source $500 Billion in Goods from US Over Time, Says Commerce Minister Piyush Goyal

The commerce minister said India would increasingly source goods from the United States where it emerges as a preferred supplier, especially in high-value segments such as advanced information and communication technology (ICT) products and graphics processing units (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 both countries move closer to formalising a trade agreement that would lower tariffs on a significant share of Indian exports.

Speaking to CNBC-TV18, Goyal said India would step up purchases from the US in areas where it offers a competitive advantage, particularly advanced ICT products and GPUs, in addition to energy imports and aircraft. “We already have aircraft and equipment orders worth over $80 billion, and this figure is set to rise. Energy imports from the US, including coking coal, will also increase substantially,” he said.

The remarks come amid expectations that the White House will issue an executive order next week reducing reciprocal tariffs on Indian goods to 18 per cent. Exporters will be able to avail of the lower tariffs from the date the order takes effect. The interim trade deal is expected to be signed by mid-March, with US Trade Representative Jamieson Greer likely to travel to New Delhi to finalise the legal text.

Zero Duty for Half of India’s Exports

According to Goyal, nearly 50 per cent of India’s exports to the US will receive zero-duty access under the interim arrangement. About 35 per cent of exports will attract an 18 per cent tariff, while 10–15 per cent of products, including steel and aluminium, will continue to face Section 232 sectoral tariffs that can go as high as 50 per cent.

“The signed agreement will be a complete legal document, including zero-duty concessions,” Goyal said, adding that India would raise the issue of Section 232 tariffs during negotiations for a comprehensive bilateral trade agreement (BTA).

Red Lines Protected

Responding to criticism from the Opposition, Goyal said India’s “red lines” had been fully safeguarded and accused vested interests of misleading farmers. “All dairy products, poultry, meat, rice, wheat, sugar, soya, corn, millets, bananas, green peas, kabuli chana and all genetically modified products are completely excluded from the trade deal,” he said. Fruits such as bananas, cherries, strawberries and citrus fruits, along with honey, fuel ethanol and tobacco, have also been kept out.

Addressing concerns raised by farmer groups over soybean oil and distillers dried grains (DDG) imports, Goyal said India was already importing soybean oil in large volumes and that genetically modified characteristics are removed during processing.

On apples, he said domestic growers would continue to be protected. India imports about 5.5 lakh tonnes of apples annually, and US shipments will be subject to a minimum import price of ₹80 along with a ₹20 duty, resulting in a floor price around 33 per cent higher than apples imported from other countries.

Labour-intensive sectors and MSMEs are expected to be among the main beneficiaries. Textiles, engineering goods, auto components, leather, footwear, sports goods, furniture, handicrafts and handloom products are likely to see immediate gains. Goyal said exports of farm and marine 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 receive zero-duty access. India will also get zero-duty treatment for gems and diamonds, clocks and watches, home décor items, and aluminium and zinc oxides.

Russian Oil, Pharma and Visas

On whether India has agreed to stop buying Russian oil, Goyal said the 25 per cent ad valorem duty linked to such purchases was not part of the trade deal and that the Ministry of External Affairs would clarify India’s position. “I am not aware of any monitoring mechanism related to Russian oil, and it does not fall under my purview,” he said.

The minister noted that a Section 232 investigation into pharmaceutical generics and ingredients is still underway, but the US has not imposed tariffs on the sector so far. “We have received assurances that generic pharmaceuticals and ingredients will be granted zero-duty treatment,” he said.

H-1B visas were not discussed during the negotiations, Goyal added, noting that Indian industry is not overly concerned and that the visa’s importance has reduced in the post-Covid era due to the rise of remote work.