Tariff Truce to Technology Transfers: India’s Expanding Purchases of US Defence and Aviation Hardware

India and the US have sealed a trade package under which Washington cuts tariffs on Indian exports while New Delhi commits to ramping up imports of US oil, defence platforms and aircraft over several years. The deal, unveiled by US President Donald Trump, envisions up to 500 billion dollars in cumulative Indian purchases across energy, technology, defence and aviation.

Officials say the commitment covers pharmaceuticals, telecom, defence, petroleum and aircraft, with American arms and aerospace companies positioned as long-term partners in India’s security and civil aviation build-out. Likely beneficiaries include US makers of helicopters, drones, jet engines and widebody jets, building on existing Apache, Chinook and maritime helicopter deals.

Strategically, the shift deepens India’s economic and defence alignment with the US as it trims Russian oil imports and navigates a contested Indo-Pacific. Negotiators will now translate the high-level commitment into specific procurement roadmaps, delivery timelines and industrial tie-ups.

Key highlights

• New India–US trade deal links tariff cuts to expanded Indian purchases of US petroleum, defence gear and aircraft.
• Trump cites potential Indian purchases of up to 500 billion dollars of US goods across energy, coal, technology, defence and aviation.
• India’s pledge includes a commitment to halt Russian oil imports, reshaping its energy basket.
• US defence and aerospace firms expected to see larger orders for helicopters, drones, jet engines and commercial jets over time.
• Detailed procurement schedules, offsets and industrial partnerships to be negotiated in coming months by trade and defence officials.

Sources: The Times of India; Hindustan Times; Reuters; Al Jazeera.