US drops pulses, digital services tax from fact sheet on India trade deal | Economy & Policy News
The US has revised the fact sheet on its recently announced interim trade agreement with India, removing all references to pulses and softening the main language about India’s $500 billion purchase commitment under the agreement.
What changed in the White House’s revised briefing?
In the earlier version, Washington had listed products on which India would remove or reduce tariffs, including dried distillers grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, selected pulses, soya bean oil, wine and spirits. The revised fact sheet no longer mentions pulses among the products covered by the proposed tariff reductions.
Another important change relates to India’s procurement plans. The previous version described India as “committed” to buying more American products, with purchases exceeding $500 billion.
The updated fact sheet replaces that statement and states that India “intends” to purchase over $500 billion worth of US energy, information and communications technology, coal and other products.
The reference to India “removing digital services taxes” has also been removed from the revised fact sheet. The previous version said India had committed to negotiating a robust set of bilateral digital trade rules to address “discriminatory or burdensome practices” and other barriers to digital trade. The revised version states that India has committed to negotiating bilateral digital trade rules aimed at removing barriers, without mentioning the removal of taxes.
It is noteworthy that India has already abolished digital services taxes or balancing duties, which have been repeatedly highlighted as a matter of concern by the United States Trade Representative (USTR).
The issue of pulses on the agenda increased concerns
The United States produces mostly dried green lentils, which are priced higher than many varieties that India imports from other countries.
India generally accounts for 8-12 percent of total U.S. pulse exports, depending on policy conditions. Approximately $74-76 million worth of pulses were exported to India in 2024, making India the fourth largest buyer after Mexico, Canada and the European Union.
While India imports pulses largely from Canada, Russia and Australia, US shipments account for a relatively small share.
Samyukta Kisan Morcha, an umbrella of various farmers’ groups, has announced that it will join the nationwide general strike on February 12, with unions calling against the Centre’s policies and the India-US trade deal.
