$500bn import push raises deficit risk

RAISING US IMPORTS IMPLIES POLICY PUSH ON CORPORATE SOURCING

- REUTERS

India's stated intention to buy $500 billion of US goods over five years under a trade deal is drawing scepticism, with economists warning it could distort commercial procurement and sharply reshape New Delhi's trade balance.

US President Donald Trump last week said he will slash tariffs on Indian goods to 18% from 50%, sparking relief in India. But he asked New Delhi to more than double its annual imports of US goods in return.

Bilateral trade was $132 billion in 2024-25, with a roughly $41 billion surplus in India's favour.

Trade experts and economists questioned whether $100 billion a year in imports was feasible without an explicit policy push that steers companies towards American suppliers.