India Agrees to Buy $500B in U.S. Goods Including Oil, Defense, Aircraft Under Trade Deal

India has committed to purchasing petroleum, defense equipment, aircraft, pharmaceuticals, telecom, and electronics from the U.S. under a new trade agreement, a government official said on February 3, 2026. The deal follows U.S. President Donald Trump’s announcement that Washington will slash tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil imports and lowering its own trade barriers. The unnamed official stated the purchases aim to reduce the U.S. trade deficit with India and will occur over several years. India also granted limited agricultural market access and cut auto tariffs as part of initial concessions. U.S. exports targeted include energy, coal, technology, and farm goods, with Trump citing a potential $500 billion value. India’s Nifty 50 rose nearly 3% and the rupee strengthened over 1% following the announcement.