Trump Claims $500 Billion India Commitment: Here’s What Officials Say

US President Donald Trump announced a reduction in tariffs to 18% and the conclusion of the India–US trade deal on Monday. However, the lack of clarity on specific details has raised concerns.

Prime Minister Narendra Modi had agreed to “BUY AMERICAN” at a much higher level, including over “$500 billion worth of US energy, technology, agricultural, coal, and other products.”

Addressing Trump’s claim of a $500 billion commitment, Moneycontrol, citing government sources, reported that “Trump forgot to write $500 in 5 years,” clarifying that the commitment is spread over a five-year period. The investment includes a wide range of merchandise imports such as energy, coal, gold, silver, technology, aircraft, and data centres.

Union Minister of Commerce and Industry, in an address on Tuesday, said that a joint statement by New Delhi and Washington will be released soon, adding that the pact is expected to be concluded in the coming weeks. Following the announcement of the deal by the two leaders, US Ambassador Sergio Gor described the pact as a “complex deal,” noting that it would require additional time to finalise.

On the energy front, Trump claimed that India has agreed to stop buying oil and energy from Russia. Industry experts have sought clarity on whether such a halt would be enforced and have urged for a wind-down period. “We always believe in diversifying our import sources. We don’t dictate to companies whether to buy or not buy Russian oil. Those who want to buy sanctioned oil, buy,” the report said citing a government official.

Regarding increased imports from the US, the report said, citing sources, that Indian imports will rise primarily in areas where domestic supply is insufficient. In FY25, India imported goods worth ₹45.33 billion from the US.

As for sensitive sectors such as agriculture and dairy, the official said the government has continued to safeguard them. Farmers’ interests are often cited as being aligned with national interest, and ministry officials have repeatedly stated that India will not open up its agriculture and dairy sectors under the pact. Exceptions have been made only for select agricultural products, such as under the India–EU free trade agreement.