India likely to buy petroleum, defence goods, aircraft from US under deal
Trump announced a trade deal with India that slashes US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers
 "India US trade talks, bilateral trade agreement, BTA negotiations, Rajesh Agrawal, Brendan Lynch, USTR, Sunil Barthwal, Modi Trump trade deal, tariffs, commerce department")
Under the deal, India has cut tariffs on automobiles as part of Washington's immediate demand to address the trade imbalance
Listen to This Article
India has agreed to buy petroleum, defence goods, electronics, pharma and telecom products as well as aircraft from the US under a trade deal, a government official told Reuters on Tuesday.
US President Donald Trump announced a trade deal with India on Monday that slashes US tariffs on Indian goods to 18 per cent from 50 per cent in exchange for India halting Russian oil purchases and lowering trade barriers.
Trump said India agreed "BUY AMERICAN at a much higher level." He said India could buy $500 billion worth of US energy, coal, along with technology, agricultural and other products.
The Indian government official, who did not want to be named, said India has agreed to buy US goods to reduce the trade deficit that the US has with India.
India's trade ministry did not immediately reply to an e-mail seeking comment.
 "Stock Market LIVE, February 3, 2026")
 "Gold-jewellery related stocks zoomed up to 20% on Tuesday after US reduced reciprocal tariffs on India.")
 "India US trade, US import tariffs 2025, reciprocal tariffs India, Indian exporters US, apparel export India, 90-day tariff pause, US India trade relations, export challenges tailor-made goods, US tariff impact India, Indo-US apparel trade")
 "India-US trade deal, trump tariffs on India")
 "Textile Industry in focus after India US trade deal")
India's exports to the US rose 15.88 per cent year-on-year to $85.5 billion in January-November, while imports stood at $46.08 billion, commerce ministry data showed.
"The commitment to buy US products covers sectors like pharmaceuticals, telecom, defence, petroleum and aircraft. It will be done over the years," the official told Reuters.
"We have offered market access in some agricultural products too," the official said, without giving details.
The official said the deal is the first tranche and a more comprehensive deal will be negotiated over coming months.
Under the deal, India has cut tariffs on automobiles as part of Washington's immediate demand to address the trade imbalance.
The announcement lifted investor sentiment on Tuesday.
India's benchmark stock index, the Nifty 50, was up nearly 3 per cent and the rupee climbed over 1 per cent to 90.40 per dollar in early trading.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
More From This Section
 "Rice, Rice exports")
 "Indian refiners, oil refiners")
 "India US trade deal, India US trade surplus, India trade with US, US-India economic relations, trade deficit USA, mutually beneficial trade deal, US trade concerns India, America First trade policy, India imports from US, US exports to India, Indo-US")
 "Nirmala Sitharaman, Nirmala")
 "Donald Trump, Trump")
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Feb 03 2026 | 11:34 AM IST