US U-turn on India trade deal: New white paper removes three sticky points on pulses, $500bn ‘commitment’

The Financial Express -

The White House has quietly changed the wording in its fact sheet on the proposed India-US trade agreement. The update tones down some of the earlier, stronger language and adds clarity on what India may buy from the United States, especially when it comes to energy and farm products.

India and the US announced last week that they had reached a trade agreement. Soon after that announcement, the White House released a factsheet on Tuesday explaining the “path forward.” That document has now been edited.

Pulses removed from Agricultural section

One of the clearest changes is in the section on agricultural imports. In the earlier version, the US had said: “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 factsheet no longer mentions pulses at all. While other farm products remain listed, the reference to “certain pulses” has been dropped.

‘Committed’ replaced with ‘Intends’ on $500 Billion purchases

The factsheet has also been revised when it comes to India’s proposed purchases from the United States. Earlier, the document had used stronger language and said India was “committed” to buying American goods worth $500 billion. It had stated: “India committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products.”

In the revised version, the wording has been softened. The term “committed” has been replaced with “intends,” and agricultural goods are no longer mentioned. The updated text now reads: “India intends to buy more American products and purchase over $500 billion of US energy, information and communication technology, coal, and other products.”

Digital Services tax reference dropped

In the earlier factsheet, the White House had said: “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, including rules that prohibit the imposition of customs duties on electronic transmissions.”

That reference to India removing its digital services taxes has now been removed. The revised version only says: “India committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade.”

Relief for Indian Exporters under interim Deal

The interim trade agreement comes after nearly a year of negotiations that began in February 2025. Under the plan, India stands to benefit from a major cut in duties. Tariffs on a wide range of Indian exports are expected to drop to 18% from 50%. These include textiles and garments, leather and footwear, plastic and rubber goods, organic chemicals, home décor products, artisanal items, and selected machinery categories.

The agreement was announced last week after a phone call between Prime Minister Narendra Modi and US President Donald Trump. During the conversation, the two leaders agreed on a framework for an Interim Agreement.

This article was first uploaded on February eleven, twenty twenty-six, at twenty-two minutes past ten in the morning.


  Source: The Financial Express