India to buy $5 billion oil and gas, $18 billion defence equipment from US

India has committed to purchase $5 billion worth of oil and gas from the US per annum and $18 billion worth of defence equipment that are under implementation, a top Indian diplomat in Washington said, highlighting the growing bilateral trade cooperation.

US exports to India have gone up by at least 30 per cent, India’s Ambassador to the US Harsh Vardhan Shringla told the American business community, his first major public engagement on Tuesday.

In the last two years, the bilateral trade has increased from $119 billion to $140 billion, he said.

At a reception hosted in his honour by the US-India Business Council (USIBC), Shringla said India has been sourcing and buying much more from the US than ever in the past. In the field of oil and gas alone, he said, India has committed to purchase $5 billion from the US every year.

Commercial Indian airlines, Shringla said, have placed orders of 300 airplanes worth $40 billion.

“We’re looking at importing products that we’ve never bought from the US before,” he said, adding that some of the consumer products from the US are increasing in demand in India.

In the defence sector, India is looking at $18 billion worth of orders that are under implementation.

Not only this, the large number of Indian students, numbering 227,000, currently contribute $6.5 billion to the American academic sector, Shringla said, giving an example of India’s contribution to the US economy.

Addressing representatives from the American corporate sector, he said that the progress made by India and the US in the last few years has been unparalleled. “What amazes me is that in the last few years, the amount of progress that our relationship has made is unparalleled in many senses. The United States is India’s largest trading partner. We are among the top 10 trading partners in terms of sheer volume of business,” Shringla said.

Referring to the pro-business initiatives of the Indian government, the Indian ambassador urged the US corporate sector to take benefit of the new business-friendly atmosphere in India and invest in the country.