India agrees to buy petroleum, defence and electronic goods, aircraft from US under trade deal: Report

India has committed to purchasing petroleum, defence goods, electronics, pharmaceuticals, telecom products, and aircraft from the United States under a newly announced trade agreement, stated a report in Reuters, citing sources. The deal, following bilateral negotiations, is intended to address the US trade deficit with India and is expected to influence multiple sectors over the coming years, the report added.

The official also noted that India has offered market access in some agricultural products, the report said, though details were not disclosed.

US President Donald Trump confirmed the agreement, stating India agreed to "BUY AMERICAN at a much higher level" and could purchase up to $500 billion worth of US energy, coal, technology, agricultural, and other products. 

India has reduced tariffs on automobiles as part of the deal, responding to a key US request aimed at balancing bilateral trade. The Indian government official said these measures are part of broader efforts to address ongoing trade imbalances.

Commerce ministry data showed India's exports to the US rose 15.88 per cent year-on-year to $85.5 billion between January and November, while imports stood at $46.08 billion.

The official described the current deal as the first tranche, with further negotiations expected to expand its scope in the coming months. Investor sentiment was positive, with India's Nifty 50 index rising nearly 3 per cent and the rupee strengthening over 1% to 90.40 per dollar in early trading.

India’s trade ministry has not yet provided an official comment on the agreement or further details regarding market access for agricultural products.