Big diplomatic boost for India as US revises trade deal fact sheet

    Diplomatic win? White House updates India trade language

    The White House has revised its India trade deal fact sheet, removing references to pulses and softening language on purchases — seen as a diplomatic boost for New Delhi
    The White House has revised its India trade deal fact sheet, removing references to pulses and softening language on purchases — seen as a diplomatic boost for New Delhi

    Trade clarity: US revises India deal after agricultural concerns

    In a significant diplomatic development, the White House has revised its fact sheet on the recently announced US–India trade arrangement, removing references to “certain pulses” from the list of American agricultural products on which India was said to eliminate or reduce tariffs.

    The earlier version of the document had stated that India would lower or remove tariffs on a wide range of US agricultural and industrial goods, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, spirits, and certain pulses — a politically sensitive item in India given its importance as a staple food, including lentils and chickpeas.

    However, the revised fact sheet, released a day later, omitted any reference to pulses. The language regarding India’s future purchases of American goods was also softened. The earlier wording suggested India had “committed” to buying over $500 billion worth of US energy, information and communication technology, agricultural products, coal, and other goods. The updated version now states that India “intends” to purchase these products.

    The changes come amid concerns raised by farmer groups and agricultural stakeholders in India, who had sought clarity on the implications of the proposed tariff reductions.

    Under the updated document, the White House now states:

    “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, soybean oil, wine and spirits, and additional products. India intends to buy more American products and purchase over $500 billion of US energy, information and communication technology, coal, and other products.”

    Source: Bloomberg
    Source: Bloomberg

    India–US trade framework

    The revised fact sheet follows a new trade understanding announced by US President Donald Trump after a phone conversation with Prime Minister Narendra Modi. As part of the arrangement, Washington reduced tariffs on Indian exports from 25 percent to 18 percent.

    Additionally, the United States removed the extra 25 percent duty that had previously been imposed on India over its crude oil imports from Russia. Earlier, India faced both a 25 percent reciprocal tariff and an additional penalty linked to its energy trade with Moscow. Under the new framework, the reciprocal tariff has been lowered and the additional penalty has been withdrawn.

    Both sides have described the current arrangement as a step toward negotiating a broader and more comprehensive trade agreement.

    For all the latest updates, download PGurus App.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    error: Content is protected !!