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US Softens India Trade Deal Claims, Drops Pulses & Digital Tax Demands

The White House has issued a revised factsheet on the India-US trade framework, significantly softening several key assertions from the original version. The update changes India's commitment to purchase over $500 billion in US products to an expression of intent and removes specific agricultural items like pulses from the tariff reduction list. It also retracts the claim that India will remove its digital services taxes, leaving only a commitment to negotiate digital trade rules. Concurrently, the US has agreed to reduce tariffs on Indian goods and has lifted retaliatory tariffs imposed last year over oil imports from Russia.

Key Points: US Updates India Trade Factsheet, Eases Key Demands

  • US softens language on India's $500B purchase commitment
  • Pulses and agriculture omitted from product lists
  • Digital services tax removal claim dropped
  • US to cut tariffs on Indian goods from 50% to 18%
2 min read

Washington issues updated India-US trade framework fact-sheet; drops pulses, agriculture; says India 'intends' to buy 500 bn USD of US products

US revises India trade framework, softening claims on $500B purchases, dropping pulses from tariff list and digital tax removal demand.

"India 'intends' to buy more American products - Revised US Factsheet"

Washington, DC, February 11

The White House has updated its factsheet on the India-US trade framework a day after its initial release, softening several key assertions related to India's commitments on purchases, tariffs, and digital trade.

The revisions come after last week's announcement of a framework for an interim reciprocal trade agreement aimed at boosting bilateral commerce. The framework for the Interim Agreement was finalised following a phone conversation between Prime Minister Narendra Modi and US President Donald Trump.

In the original version of the factsheet, it was stated, "India committed to buy more American products and purchase over USD 500 billion of US energy, information and communication technology, agricultural, coal, and other products."

The revised factsheet now says India "intends" to buy more American products and omits the term "agricultural" from the list of product categories.

Changes were also made in the tariff section. The earlier document noted, "India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products."

The updated version removes the reference to "certain pulses" from this list.

On digital trade, the initial factsheet mentioned, "India will remove its digital services taxes" and "committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade."

The current version drops the claim that "India will remove its digital services taxes" and retains only that "India committed to negotiate a robust set of bilateral digital trade rules."

Under the proposed arrangement, the US will reduce tariffs on Indian goods to 18 per cent from the current 50 per cent.

As part of the broader engagement, US President Donald Trump has removed the 25 per cent tariffs imposed on India in August last year over purchases of Russian oil, noting that New Delhi has committed to stopping direct or indirect imports of oil from Moscow and has undertaken "significant steps" in this direction.

- ANI

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Reader Comments

P
Priya S
$500 billion is a massive number! I hope this "intention" translates into real benefits for Indian industries and not just a one-sided deal. The digital tax part is interesting - we shouldn't give up our right to tax digital giants easily.
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Rohit P
The fact that they had to revise the fact sheet shows our government stood its ground. "Intends" is very different from "committed". Well done to our negotiators for protecting our interests, especially on pulses and agriculture. Jai Hind!
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Sarah B
As someone working in tech, the digital services tax is crucial for a level playing field. Glad to see it wasn't just given away. Trade should be fair, not just about buying American products.
V
Vikram M
The reduction of US tariffs from 50% to 18% on our goods is the real win here. That will help our exporters significantly. Let's focus on that positive. The $500bn figure seems more like an aspiration, which is fine.
M
Michael C
Respectfully, the constant revisions and softening of language don't inspire confidence in the deal's stability. Clarity from the start is important for businesses on both sides to plan. Hope the final agreement is more concrete.
A
Ananya R

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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