India has pledged to buy oil, defense goods, electronics, pharmaceuticals, telecommunications products and aircraft from the United States under a recently announced trade deal, a Reuters report said, citing sources. The agreement, following bilateral negotiations, aims to address the US trade deficit with India and is expected to influence various sectors over the next few 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 deal, saying India agreed to “BUY AMERICAN at a much higher level” and could buy up to $500 billion of energy, coal, technology, agricultural and other products from the US.

India has reduced tariffs on autos 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 current trade imbalances.

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

The official described the current agreement as the first tranche, and further negotiations are expected to expand its scope in the coming months. Investor sentiment was positive, with India’s Nifty 50 index up nearly 3 percent and the rupee strengthening more than 1 percent to 90.40 per dollar in early trade.

India’s commerce ministry has yet to provide any official comment on the deal or further details on market access for agricultural products.