India promises US purchases worth $500 billion, agreement to be concluded in March

According to the Indian Minister of Commerce, India and the United States are close to signing a formal trade agreement, which should take place in March. The agreement is expected to bring a significant reduction in tariffs on US goods imported into India, while Washington is also pushing for a reduction in tariffs on Indian exports from the current 50 percent to approximately 18 percent.

Both sides are expected to issue a joint statement in the coming days, setting out a specific timetable for the implementation of the agreement for the first time.

President Donald Trump presented the agreement as a surprising breakthrough, as he also made it conditional on India stopping buying Russian oil and opening its market to US companies.

According to the minister, New Delhi plans to make massive purchases of American energy, aircraft, and semiconductors worth at least $500 billion over the next five years. Boeing aircraft orders alone could reach tens of billions, with the total amount, including engines, exceeding $100 billion.

(reuters, pir)