Washington Updates Trade Pact Language: Commitment Softens to Intent

Revised document changes India's purchase pledge to mere intent

Significant modifications have appeared in the official documentation regarding the landmark India-US trade deal, just one day after the White House released the initial terms. Washington has updated its factsheet to reflect a softer stance on New Delhi’s financial pledges, specifically altering the language around India’s purchase of American goods.

Originally, the text stated that New Delhi "commits" to purchasing over $500 billion worth of US products, including energy and technology. The revised version now states that India simply "intends" to make these purchases, marking a distinct shift from a binding obligation to a voluntary goal.

Specific Inclusions and Exclusions

Beyond the purchase pledge, the updated factsheet has removed specific references to "agricultural" products in certain categories. While the earlier document listed "certain pulses" among the items destined for tariff reduction or elimination, the current version has deleted this specific mention. This adjustment could have implications for domestic agriculture markets, a key concern for stakeholders across the country.

Digital Tax and Tariff Shifts

Another major revision concerns the digital economy. The initial draft explicitly stated that India would remove its digital services taxes. However, the new text replaces this mandate with a broader agreement to negotiate bilateral digital trade rules, removing the direct requirement for immediate tax elimination.

Broader Context of the Deal

These changes come shortly after both nations unveiled a framework aimed at lowering import duties to stimulate bilateral commerce. Under this arrangement, the United States is set to slash tariffs on Indian goods from 50 percent down to 18 percent. In exchange, India will reduce duties on various American industrial and food products.

Additionally, the geopolitical landscape plays a role in this agreement. President Donald Trump has lifted the punitive 25 percent additional import duty previously imposed on India regarding Russian oil purchases. Washington cited New Delhi's "significant steps" toward diversifying energy sources as the reason for this relief. Both nations are working toward signing the final India-US trade deal by mid-March.