White House quietly revises India-US trade deal factsheet: Pulses and digital tax claims dropped | India News
Within 24 hours of announcing the so-called “historic” interim trade agreement between the United States and India, the White House issued significant revisions to its official memorandum. The regulations, made on February 10, eliminate some specific commitments originally linked to India. This suggested possible tension or negotiations going on behind the scenes.
The changes appear to roll back key agriculture and digital trade terms from the initial document published on February 9.
Agricultural negligence: The retreat of ‘pulses’
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One of the most notable changes is the removal of “certain legumes” from the list of American agricultural products marked for tariff reduction.
original text: India has agreed to reduce tariffs on a wide range of goods, including “dried distillers grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, some pulses, soybean oil, wine and spirits.”
revised text: The phrase “specific blows” has been completely deleted.
Pulses are a sensitive crop in India, the world’s largest producer and consumer. Analysts suggested that this negligence was due to the strong stance taken by New Delhi to protect local farmers.
Softening language: From ‘commitment’ to ‘intention’
The White House has also significantly changed its stance on India’s $500 billion purchase plan.
original textHe stated that India has “committed” to purchasing $500 billion worth of US energy, aircraft and technology products over the next five years.
revised text: The wording was softened to state that India “plans to make” these purchases.
The shift from a binding “commitment” to a non-binding “intent” brings the fact sheet closer to the joint statement issued on February 7. Many viewed this statement as a framework for future discussions rather than a finalized agreement.
Digital services tax: Claims disappear
The revised document removed an explicit assertion regarding India’s digital taxation policy.
first request: The White House had initially stated that India would “eliminate digital services taxes.”
The current situation: This entire sentence has been removed.
While India has phased out its 6% equalization tax on digital advertising by April 1, 2025, it still has “Significant Economic Presence” (SEP) rules that tax non-resident digital firms. The deletion shows that the removal of such duties remains a key tension point in broader Bilateral Trade Agreement (BTA) negotiations.
What’s left in the deal?
Despite the adjustments, the core of the interim agreement still focuses on mutual tariff adjustments.
industrial products: India will still reduce or eliminate tariffs on most U.S. industrial products.
technology collaboration: Both countries plan to significantly increase trade in Graphics Processing Units (GPUs) and data center technology.
Mutual tariffs: The USA reduced the reciprocal customs duty on Indian goods from 25% to 18% in exchange for India moving away from Russian oil.
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