Image-AI
White House Quietly Revises India-US Trade Deal After India Flags Errors
Summary: In a quiet move, the White House has revised its India-US trade deal document after India objected to misleading claims on pulses, digital taxes, and a $500 billion purchase plan.
In a significant but low-profile move, the White House has quietly updated its official fact sheet on the India-US trade framework after Indian authorities raised concerns over inaccurate and unapproved claims.
The revised document removes references to tariff cuts on pulses, drops statements on digital services taxes, and softens the language on India’s proposed $500 billion purchase plan. These corrections were made after New Delhi pointed out that certain items were included without mutual consent.
People familiar with the matter said the changes were made to reflect the actual understanding between the two countries and avoid diplomatic confusion.
Pulses Removed: A Major Win for India’s Farmers
One of the most important changes is the deletion of “certain pulses” from the list of agricultural products on which India was said to reduce tariffs.
Earlier, the fact sheet mentioned pulses along with:
- Tree nuts
- Soybean oil
- Wine and spirits
- Fresh and processed fruits
Pulses are a politically and economically sensitive crop in India. The country is the world’s largest producer and consumer of lentils, chickpeas, and dry beans. Millions of farmers depend on this sector for their livelihood.
By getting this reference removed, India protected its domestic farming industry from possible import pressure.
Digital Tax Claim Corrected
Another major correction relates to digital services taxation.
The original document claimed that India “will remove its digital services taxes.” However, the revised version now only states that India has “committed to negotiate” digital trade rules.
In reality, India had already removed its 6% equalisation levy on digital advertising services from April 1, 2025, under the Finance Bill 2025 - almost a year before the trade framework was announced.
This made the earlier claim inaccurate and misleading.
$500 Billion Deal: Language Softened
The White House also changed the wording regarding India’s proposed purchase of American goods.
- Earlier version: India has “committed” to buying $500 billion worth of US products.
- Revised version: India “intends” to purchase $500 billion worth of US products over five years.
The products include:
- Energy resources
- Aircraft and spare parts
- Precious metals
- Advanced technology
- Coking coal
This change makes the agreement non-binding and aligns it with the February 7 joint statement signed by both nations.
‘Agricultural’ Term Also Removed
The revised document has also removed the word “agricultural” from the purchase list. This suggests that the trade expansion will cover multiple sectors and not just farm products.
Experts say this gives India more flexibility in future negotiations.
Why These Revisions Were Necessary
Officials said that some statements in the original document were included due to “inadvertent drafting errors” and were not part of formal negotiations.
India raised objections through diplomatic channels, leading to the updated version.
This incident highlights the importance of precision in international agreements, especially between major global partners.
Impact on India-US Trade Relations
Despite the corrections, India and the US continue to strengthen their economic partnership.
Key focus areas include:
- Semiconductor cooperation
- Defence manufacturing
- Renewable energy
- Artificial intelligence
- Data centre infrastructure
Both sides aim to expand bilateral trade beyond $300 billion in the coming years.
However, analysts say that transparency and accurate communication will be crucial for long-term trust.
No Official Comment Yet
So far, the White House has not issued any public explanation regarding the revisions. The updated document was quietly uploaded after the original version had already circulated widely.
Indian officials have also refrained from making public statements.
What This Means for India’s Economy
For India, the revisions signal strong negotiation capacity and protection of national interests.
By correcting the record, New Delhi ensured that sensitive sectors like agriculture and digital policy remain under sovereign control.
This also reassures domestic stakeholders, including farmers, startups, and tech companies.
FAQ
Why did the White House change the fact sheet?
Because India objected to claims that were not officially agreed upon.
Why are pulses so important to India?
They are a key food source and support millions of farmers.
Did India remove digital taxes?
Yes, the 6% levy was removed in April 2025.
Is the $500B deal binding?
No. It is now stated as an “intention,” not a commitment.
Will this affect future trade talks?
No major impact, but it stresses the need for clarity.
(Source-Hindustan Times)
India US Trade Deal 2026, White House Fact Sheet Revision, India US Trade News Today
Post a Comment