Gujjar protesters recently broke up railway tracks
The government of the Indian state of Rajasthan and leaders of the Gujjar community say they have reached a deal over access to jobs and education.
More than 40 Gujjars have been killed in clashes with the security forces in the past month as the tribe has protested over the issue.
Under the terms of the deal, the politically influential Gujjar tribe will be put into a special category.
Officials say this will provide them with better employment opportunities.
The BBC's Narayan Bareth in the Rajasthani capital, Jaipur, says the deal has been welcomed by most Gujjars, even though they did not get their central demand, which was to be granted tribal status.
Our correspondent says that this would have given them even better access to jobs and education than the special category status which the state government awarded them on Wednesday.
Gujjar protests have recently turned violent (Pic: Shahzad Khan)
Under the terms of the deal, millions of Gujjars in Rajasthan will be in the same category as the gypsy community - known as Banjaras - and the shepherd community - known as Rebaris.
In recent weeks Gujjar demonstrators have disrupted rail services between Jaipur and Delhi.
Last month, the Rajasthan government announced an aid package worth $60m (£30m) for the community but this was rejected.
The Gujjar community leader, Kirori Singh Bainsla, said he was fully satisfied with the outcome of the latest talks.
"The agitation will be called off," Mr Bainsala told reporters in Jaipur.
The Gujjars are currently considered to be part of Rajasthan's second-lowest socio-economic group, known as Other Backward Classes, a step up from the Scheduled Tribes and Castes, the lowest classification.
Correspondents say that Wednesday's announcement creates a special category for them within the Other Backward Classes.
The central government made it illegal to discriminate against someone on the basis of caste soon after India won its independence.
But correspondents say that the influence of the caste system remains powerful, which is why the government set quotas for jobs and university places.