What will India buy from the US for $500 billion? Piyush Goyal answers

US President Donald Trump said that India would buy American products worth $500 billion as part of the latest trade agreement between the two countries.

Defending the details of the pact, Commerce and Industry Minister Piyush Goyal presented a snapshot of how the money would be spent.  “The target of $500 billion bilateral trade will mean more exports as well as sourcing,” he said.

Commerce Secretary Rajesh Agrawal said that India already imports goods worth nearly worth $300 billion from the US, and

the demand is expected to rise further as the economy expands.

Here's a tentative breakup of India's proposed $500 billion imports from the US in the next five years:

Import Category	Estimated Value (USD)
Aircraft and related components	Over $100 billion
Data centre equipment and ICT hardware	$100–150 billion
Energy imports, steel and infrastructure-linked inputs	About $250–300 billion
Total	$500 billion

Aircraft orders already placed with Boeing were in the range of $70–80 billion, and once parts and related components are added, the total value could cross $100 billion, Goyal explained.

Commerce secretary Agrawal added that the latest pact between the Modi and Trump administration is likely to be converted into a legal agreement by mid-March.

Read more: On US India deal, Goyal says energy diversification paramount for India