India has agreed to buy petroleum, defence goods, and aircraft from the U.S., while partly opening up its highly-guarded agriculture sector under a trade deal, according to a government official, as the two sides reconcile after months of tensions.
President Donald Trump announced a trade deal with India on Monday that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers. Trump said India agreed to buy more American goods with purchases rising to as much as $500 billion including energy, coal, technology, agricultural and other products. The Indian government official, who did not want to be named, said India has agreed to buy U.S. goods including telecom and pharmaceuticals and offered market access for some agricultural products, as part of New Delhi’s commitments under the deal.
India recently offered select market access for agricultural products to the European Union under a trade deal. The Asian nation has also lowered tariffs on imported cars to address Washington’s immediate U.S. demands to conclude the first tranche of the deal, the official added. India’s trade ministry did not immediately reply to an e-mail seeking comment. India’s exports to the U.S. rose 15.88% year-on-year to $85.5 billion in January-November, while imports stood at $46.08 billion, Indian government data showed. “The commitment to buy U.S. products covers sectors like pharmaceuticals, telecom, defence, petroleum and aircraft. It will be done over the years,” the official told. The official said a more comprehensive pact with the U.S. will be negotiated over coming months.
