India's $500 Billion US Import Target 'Very Conservative', Says Piyush Goyal
India will face no difficulty in purchasing goods worth $500 billion from the United States over the next five years, with Commerce and Industry Minister Piyush Goyal calling the figure "very conservative" given the scale of demand expected from the country's rapidly expanding economy.
Projected Import Demand to Reach $2 Trillion
Speaking to PTI Videos in an interview on Sunday, Goyal revealed that India's total import demand is projected to touch approximately $2 trillion over the next five years, creating significant scope to increase sourcing from the United States. "We are even today importing $300 billion of goods that can be imported from the US," Goyal stated. "That is going to grow up to two trillion in the next five years."
The minister emphasized that while demand exists in India, American suppliers must remain competitive. "I told my counterparts that look, I can assure you that there is demand in India, but you have to be competitive," he added.
Trade Pact Framework and Import Roadmap Finalized
India and the United States announced on Saturday that they have finalized the framework for the first phase of their bilateral trade agreement. According to a joint statement issued by both nations, India has expressed its intention to purchase $500 billion of US products across multiple sectors over the next five years, including:
- Energy products
- Aircraft and aircraft parts
- Precious metals
- Technology products
- Coking coal
Goyal highlighted that rising investments by global technology firms in India are expected to significantly increase demand for equipment imports. He specifically noted that large data center expansion is likely to drive demand for US-origin technology and equipment. "My sense is that we will see 10 gigawatts of data centers in India," he said, adding that the US can supply key infrastructure equipment.
Aviation Sector Demand Could Exceed $100 Billion
Responding to queries about whether the $500 billion purchase plan includes existing aircraft orders, Goyal confirmed that current commitments are part of the overall figure. "Everything that we are talking about is in continuation and includes what we already are purchasing," he clarified.
India currently imports about $45-50 billion worth of goods from the US, largely in categories where domestic production remains limited. The aviation sector alone represents a massive opportunity, with Goyal stating that demand could cross $100 billion over the next five years.
"We are going to need aircraft. We are going to need engines for aircraft. We are going to need spare parts," Goyal explained. "We already have $50 billion worth of orders on Boeing alone for aircraft. We have orders for engines. So, almost $80-90 billion is already on order for the next five years. We will actually need more than that."
The minister referenced Tata Group's potential additional orders, suggesting aviation sector requirements could easily surpass $100 billion when combined with energy imports including oil, LNG, LPG, and crude oil.
Steel, Energy and Technology to Drive Future Imports
Goyal also flagged strong demand for coking coal to support India's steel sector expansion. The country currently imports about 17-18 billion tonnes of coking coal annually, but rising steel production could push import demand sharply higher.
"When we reach 300 billion, which is a stated target and expansion is going on at breakneck speed in the steel industry, we'll need $30 billion per year for coking coal alone," Goyal projected. He noted that these imports have been ongoing since previous administrations, representing continuity rather than new policy directions.
The minister emphasized that rising consumption and industrial demand in the world's fastest-growing major economy will continue to drive imports of high-end technology and industrial inputs. India's budget announcements promoting data centers, AI missions, critical manufacturing, and critical minerals processing will require substantial imports of advanced equipment.
"All of this will require high-quality machinery, ICT products, and Nvidia chips, as well as machinery for AI and quantum computing," Goyal stated. "Where is all of that going to come from?"
US Remains Leading Provider of Advanced Technologies
Goyal affirmed that the United States remains the world's leading provider of advanced technologies, making it a natural partner for India's growth ambitions. "So, $100 billion per year is very conservative," he concluded. "I think it's extremely conservative for a country which wants to become a $30 trillion economy, which India intends to."
The minister's comments underscore India's confidence in its economic trajectory and the strategic importance of US-India trade relations as both nations work to deepen their economic partnership through structured agreements and mutual market access.
