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India–US Trade Deal: What the New Factsheet Changes

Feb 11, 2026 | Updates | 0 comments

The White House has updated its factsheet on the India–US trade agreement, clarifying several provisions around market access, agriculture, digital taxes and purchase commitments.

The revisions do not change the overall direction of the deal, but they provide a clearer view of what is agreed, what remains protected and which areas are still under negotiation.

For businesses, the updated language helps distinguish between binding commitments and longer-term intentions.

Change in wording on India’s $500 billion purchase plan

The earlier version of the factsheet said India “will purchase over $500 billion” of American energy, technology, metals and other goods.

The updated version now says India “intends to purchase”.

This change matters because “intends” reflects a strategic direction, not a binding obligation. It gives India flexibility to pace purchases based on:

  • Domestic demand
  • Price cycles
  • Energy requirements
  • Geopolitical conditions

The revised wording makes the commitment directional rather than fixed.

Pulses removed from the tariff list

The earlier US factsheet included certain pulses in the list of agricultural products where India would reduce or eliminate tariffs.

This reference has now been removed.

India’s agriculture chapter already treats pulses as a fully protected and sensitive category, along with wheat, rice, dairy and poultry.

The correction brings the US document in line with India’s stated position:

  • Pulses are central to food-price stability
  • Tariff cuts could affect farm incomes
  • Policy flexibility is important in a politically sensitive sector

Digital tax commitments reworded

Another revision relates to India’s digital services tax.

The earlier US version said:

“India will remove its digital services taxes.”

The updated version now reads:

“India is committed to negotiating robust bilateral digital trade rules.”

This indicates that:

  • India has not committed to withdrawing the digital tax at this stage
  • Digital trade remains an open and complex negotiation area under the broader Bilateral Trade Agreement (BTA)

Technology and digital services firms should expect phased negotiations rather than immediate policy changes.

Agriculture gets a longer transition timeline

India has proposed a 10-year phased tariff reduction for selected agricultural and intermediate products used in food processing, including specific oils, albumins, modified starches and plant derivatives.

The longer transition period is intended to:

  • Give domestic suppliers time to adjust
  • Reduce price volatility
  • Protect smaller processing businesses

This reflects a gradual approach to liberalisation rather than immediate tariff cuts.

The deal remains an interim framework

Both governments continue to describe the agreement as an interim arrangement.

This means:

  • Key chapters, including digital trade, procurement and advanced services, are still under negotiation
  • A broader India–US Bilateral Trade Agreement is expected later
  • The current deal sets the direction but not the final structure

For businesses, this should be viewed as the first phase of a longer negotiation cycle.

Protection of farm and sensitive sectors

Commerce Minister Piyush Goyal has stated that the agreement is structured around protecting farmers and sensitive sectors.

This is reflected in the revised factsheet:

  • No concessions on pulses, wheat, rice, dairy and poultry
  • Long transition periods for certain agricultural inputs
  • No binding commitments on digital taxes
  • Flexible wording on large purchase volumes

The approach expands market access where possible while maintaining protection in sensitive areas.

A more aligned policy document

The revised factsheet now reflects the negotiated framework more closely:

  • The US gains clearer access in industrial goods and some agricultural products
  • India retains protection for sensitive farm sectors and its digital tax regime
  • Large purchase commitments are framed as long-term intentions
  • Negotiation space for the future BTA remains open

For companies tracking the deal, the updated document provides a clearer policy baseline, with fewer immediate regulatory surprises.

The interim agreement sets the direction, but several major chapters are still unresolved.