India’s aviation sector to drive up to $100bn in aircraft and parts imports: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal said that India’s rapidly expanding civil aviation sector will require between $80 billion and $100 billion worth of aircraft, engines, and spare parts in the coming years, reflecting the country’s strong growth trajectory in air travel and airline operations.

Speaking in an interview on the recently announced India–US interim trade agreement framework, Goyal said that India’s commercial aviation needs are rising sharply as passenger traffic, airline fleets, and airport infrastructure continue to expand.

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“India needs aircraft. We already have orders worth around $50 billion placed with Boeing for planes, in addition to large orders for engines and spare parts. I expect that India will require anywhere between $80 billion and $100 billion worth of civil aviation-related products,” the minister said.

India is currently one of the world’s fastest-growing aviation markets, with airlines adding new routes, expanding fleets, and increasing frequencies to meet rising domestic and international demand. Goyal said this growth will translate into long-term demand for aircraft manufacturing, maintenance, and supply chain services, creating major commercial opportunities for global aviation companies.

Beyond aviation, Goyal highlighted India’s growing dependence on information and communication technology (ICT) products, driven by rapid expansion of data centres, artificial intelligence (AI), and quantum computing infrastructure.

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He noted that India currently imports ICT and related products worth approximately $300 billion every year. Over the next five years, this figure is expected to rise sharply to $2 trillion, reflecting the country’s digital transformation and technology-driven growth.

“We are setting up data centres and building our AI and quantum computing capabilities. All of this will require huge volumes of ICT products. Today, we already import about $300 billion annually, and over the next five years, we estimate this will reach $2 trillion,” Goyal said. He added that the United States has strong capabilities to supply these products at competitive prices.

Goyal also clarified reports around the $500 billion figure mentioned in the India–US interim trade agreement framework. He said India is not legally bound to purchase goods worth that amount but intends to do so based on its growing commercial needs.

“There is no binding obligation. We hope to receive very competitive pricing, and we intend to source a good volume of these products from the US as part of our $2 trillion imports. But intention and obligation are very different,” he explained.

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India and the United States recently announced a framework for an interim trade agreement aimed at strengthening economic ties and paving the way for a broader Bilateral Trade Agreement (BTA). The framework follows discussions between US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.

The minister’s remarks highlight how civil aviation and digital infrastructure are becoming central pillars of India’s economic growth. With rising passenger traffic, expanding airline fleets, and increasing investment in data and technology infrastructure, India is set to remain one of the world’s most attractive markets for global aerospace and technology companies in the coming decade.