India has reportedly rejected the US offer to purchase F-35 fighter jets from the United States, making a clear shift in its defence strategy, people familiar with the matter told Bloomberg. However, India has ruled out immediate retaliation against President Donald Trump's 25 per cent tariff.
During Prime Minister Narendra Modi's visit to the White House in February, Trump offered to sell the F-35 fighter jets to India. However, the PM Modi government is more interested in a partnership focused on jointly designing and manufacturing defence equipment domestically, the officials said.
Trump on Wednesday announced that impose 25 per cent tariffs on India, along with a penalty, citing several reasons. India has been disappointed by US tariffs.
The New Delhi officials were shocked and disappointed by the tariffs, the people said on condition of anonymity. The government is keen to keep bilateral trade talks on track and is exploring ways to increase purchases from its largest trading partner.
The sources said India is considering raising its natural gas purchases from the US and increasing imports of communication equipment and gold, Bloomberg reported. They added that boosting these purchases could help narrow India's trade surplus with the US over the next three to four years.
The source said that no defence purchases are being planned by India. PM Modi-led government is unlikely to buy additional defence equipment from the US, which is notably a key demand from Trump, officials familiar with the matter said, requesting anonymity.
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A day after Trump announced the tariffs, India's Commerce Minister Piyush Goyal said that the government is now engaging with exporters to assess the impact of Mr Trump's tariffs.
He added that his ministry is collecting feedback from exporters and industry groups, and will take "all necessary steps to secure and advance our national interest."

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