India Signals $80B Boeing Order in Major US Trade Push

India's Commerce Minister Piyush Goyal has signaled a major expansion of trade with the United States, announcing that New Delhi is prepared to place orders for up to $80 billion in Boeing aircraft.

Figure 1: Indian Commerce Minister Piyush Goyal, a key figure in the country's trade negotiations, outlined the potential for a landmark aircraft deal with the United States.

Speaking on Thursday, Goyal stated that India's demand for aircraft includes nearly $80 billion in orders for Boeing that are "yet to be placed but ready." He added that factoring in engines and spare parts could push the total value of these U.S. imports to over $100 billion from the aviation sector alone.

This potential deal comes as Boeing faces a lawsuit from the families of passengers who died in an Air India crash in Ahmedabad last June. The lawsuit alleges that defective dual switches contributed to the disaster, which claimed 241 of the 242 lives on board.

Beyond aviation, Goyal noted the potential for India to procure at least $500 billion in goods from the U.S. over the next five years. However, he clarified that this figure does not represent an explicit investment commitment within the U.S.-India trade agreement.

Trump's Claims vs. India's Cautious Stance

The announcement followed a social media post on Monday from U.S. President Donald Trump, who declared that Washington and New Delhi had reached a trade agreement.

According to Trump, the deal involves several key concessions:

• The U.S. will reduce tariffs on Indian goods to 18%.

• India will lower duties on American goods to zero.

• India will replace Russian oil with supplies from the U.S. and Venezuela.

• India will open sensitive markets, including agriculture.

• India will purchase $500 billion worth of American goods.

While the Indian Prime Minister welcomed the tariff cut from the current 50% rate, he did not confirm the other details outlined by Trump.

Scrutiny Mounts Over Deal's Ambitions

Experts have expressed skepticism about the feasibility of Trump's claims, particularly the $500 billion purchase target, which many have called "a stretch." For context, India's total goods imports for the 2025 financial year stood at $720.24 billion, with only $45.3 billion sourced from the United States.

The Indian government has remained tight-lipped on the specifics of the deal, drawing criticism from opposition parties. Rahul Gandhi, India's opposition leader, accused Prime Minister Modi of being "compromised" and of having "surrendered on Tariffs."

New Delhi has not officially confirmed key elements of Trump's announcement, such as the zero-duty commitment for U.S. goods, the halt of Russian oil imports, or the firm $500 billion purchase plan. Analysts warn that Trump's "unrealistic" claims could jeopardize the deal, drawing parallels to his threats to raise tariffs on South Korea despite a trade agreement.

Timeline for the New Trade Agreement

Minister Goyal provided a timeline for finalizing the initial phase of the trade pact.

A joint statement is expected within the next 3-4 days, after which the new 18% U.S. tariff on Indian exports will take effect. A formal agreement is slated for mid-March, which will activate India's tariff concessions for U.S. goods.