India is preparing to commit up to $80 billion for the purchase of Boeing aircraft, following the conclusion of a new bilateral trade agreement with the United States, highlighting the nation’s intent to expand commercial ties with the U.S.
India’s Commerce and Industry Minister, Piyush Goyal, stated that demand for passenger planes alone could account for nearly $80 billion in forthcoming orders from Boeing, with additional imports of engines and spare parts likely to push related purchases above $100 billion.
The world’s fourth-largest economy has the potential to import at least $500 billion in goods from the U.S. over the next five years, said Goyal, though he noted that the trade pact did not involve a firm investment promise from either side.
The announcement comes after U.S. President Donald Trump publicized details of the new trade framework. As part of the arrangement, Washington will lower tariffs on Indian exports to 18% from 50%. For its part, New Delhi is expected to remove import duties on U.S. goods, shift oil sourcing from Russia to the U.S. and Venezuela, and increase access to sensitive sectors, including agriculture.
Meanwhile, Indian authorities have yet to confirm claims regarding zero tariffs on American goods or a definitive end to Russian oil imports. The lack of detail has led to calls from the opposition for greater transparency regarding the terms of the agreement, particularly concerning agricultural market access.
India’s total imports for the 2025 fiscal year reached $720.24 billion, with imports from the U.S. accounting for $45.3 billion and the overall trade deficit standing at $94.3 billion. Industry analysts have said that while increased U.S. imports are likely, the $500 billion target appears challenging.
The aviation sector has already seen substantial order activity, with Air India having close to 200 Boeing aircraft on order and Akasa Air holding contracts for 226 Boeing 737 MAX jets. However, ongoing litigation is affecting Boeing’s business in India, as families of victims from last year’s Air India plane crash have filed lawsuits alleging equipment defects.
