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India-US Trade Deal: Which are the key American sectors inside India’s USD 500 billion commitment; Details | EXCLUSIVE

Source: etnownews
Published: February 4, 2026 at 05:30 AM
India-US Trade Deal: Which are the key American sectors inside India’s USD 500 billion commitment; Details | EXCLUSIVE

India-US trade deal: After months of negotiations, India and the United States have finally sealed a trade deal that slashes tariffs imposed on New Delhi to 18%. The White House has hailed the trade agreement with India, saying Prime Minister Narendra Modi has committed to ending purchases of Russian oil, buying energy from the United States, and investing USD 500 billion across key American sectors.India-US Trade Deal: What White House SaidWhite House Press Secretary Karoline Leavitt said the agreement announced by President Donald Trump would bring direct benefits to the US economy and American consumers.Meanwhile, government official sources told ET NOW that the India-US agreement covers data centre equipment, advanced AI chips and civil nuclear cooperation, while safeguarding India’s economic interests.Let’s take a look at the key points inside India’s USD 500 billion pledge:– India to import data centre equipment, boost nuclear cooperation.– Imports to meet domestic demands.– The deal will support exports and trade surplus.– India’s interests remain protected.– USD 500 billion purchases spread over 5 years and the intent is essentially to meet India’s domestic demands across sectors like nuclear cooperation.– Importing equipment relating to data centres in an effort to strengthen India’s data infrastructure.– Doubling down on imports of advanced artificial intelligence chips.India-US Trade Deal: What PM Modi SaidPrime Minister Narendra Modi said it was wonderful to speak with his "dear friend" Trump. "Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said in statement."When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights," PM Modi added.India-US Trade TiesIndia's merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by America, according to Commerce Ministry data. Exports also contracted in September and October last year. However, it rose 22.61 per cent in November. Imports grew 7.57 per cent to USD 4.03 billion in December 2025.During the April-December period of this fiscal year, the country's exports to the US increased 9.75 per cent to USD 65.87 billion, while imports rose 12.85 per cent to USD 39.43 billion.The US had imposed a sweeping 50 per cent tariff on Indian goods entering American markets from August 27.