India’s interests fully protected in US trade deal, $500 bn commitment over five years: Govt source

Donald Trump and Narendra Modi

• India-US trade deal includes $500B imports over 5 years in various sectors
• India continues independent energy imports, including Russian oil.
• Safeguards in place for sensitive sectors like agriculture and GM crops

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Government sources on Tuesday sought to clarify key aspects of the India-US trade agreement after US President Donald Trump’s social media post triggered questions around tariffs, energy imports and strategic autonomy.

Addressing Donald Trump’s claim of a $500 billion commitment, a government source said, “Trump forgot to write $500 billion in 5 years.” Officials clarified that the figure refers to five years and includes a wide range of merchandise imports.

“$500 billion dollars commitment is over a five year period, includes many merchandise goods like energy, coal, gold, silver, tech, aircraft, data centre,” a government source said.

On energy purchases and Russian oil, officials stressed that India continues to follow an independent and diversified import policy.

“We always believe in diversifying our import sources. We don't dictate any companies to buy or not buy Russian oil. Those who want to buy sanctioned oil, buy,” a government source said, underlining that commercial decisions are left to companies.

Responding to concerns over increased imports from the US, sources said the agreement reflects India’s genuine requirements in critical sectors.

“What they have to offer, we don't have. We don't have NVIDIA chips, or data centres. Our imports will increase, and what we will import is what we need,” the source added.

On sensitive areas such as agriculture and genetically modified crops, the government maintained that safeguards are in place. A source said, “All sensitivities have been taken care of.”

India imported goods worth $45.33 billion from the United States in FY25.

Earlier, US President Donald Trump had said in a post on Truth Social that Prime Minister Narendra Modi had agreed to “BUY AMERICAN” at a much higher level, including over “$500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”

Government sources, however, reiterated that the trade deal is structured to serve India’s economic priorities, technology needs and long-term growth, while preserving strategic and policy autonomy.