US drops pulses, digital services tax from fact sheet on India trade deal

The US has revised its interim trade deal fact sheet with India, removing pulses from tariff talks and softening language on India's $500 billion purchase plans, even as negotiations continue

The US has revised its fact sheet on the recently announced interim trade deal with India, removing any reference to pulses and softening key language related to India’s $500 billion purchase commitment under the agreement.

 

What changed in the revised White House fact sheet?

 

In the earlier version, Washington had listed products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, selected pulses, soybean oil, wine and spirits, on which India would eliminate or reduce tariffs. The revised fact sheet no longer mentions pulses among the products covered under the proposed tariff reductions.

 

Another significant change relates to India’s purchase plans. In the earlier version, India was described as having “committed” to buying more American products, with purchases exceeding $500 billion.

 

 

The updated fact sheet replaces this language, stating that India “intends” to buy over $500 billion worth of US energy, information and communication technology, coal and other products.

 

The revised fact sheet has also dropped reference to India "removing its digital services taxes". The earlier version stated that 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 addressing barriers, without mentioning the removal of the taxes.

 

Notably, India has already abolished the digital services taxes or equalisation levies that were repeatedly highlighted as a concern by the United States Trade Representative (USTR). 

Mention of pulses raised concerns

 

The inclusion of "certain pulses" in an earlier version of the fact sheet raised concerns among farmers over the trade pact’s impact on domestic agriculture. However, the fact sheet did not specify which pulses were covered.

 

The US mainly produces dried green lentils, which are priced higher than several varieties India imports from other countries.

 

India typically accounts for 8–12 per cent of total US pulse exports, depending on policy conditions. In 2024, pulses worth about $74–76 million were exported to India, making it the fourth-largest buyer after Mexico, Canada and the European Union. 

 

India largely imports pulses from Canada, Russia and Australia, with US shipments forming a relatively small share.

 

Samyukta Kisan Morcha, an umbrella of various farmer groups, have announced to join the nationwide general strike on February 12 called by trade unions against the Centre's policies and the India-US trade deal.