India-US Deal: No pulse duty cuts, $500B purchase eased
August 26, 2026
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Home World North America USA

India–US Interim Trade Deal: No duty relief on pulses, $500 billion buy softened as Washington corrects fact sheet

The United States has revised its trade factsheet after India objected to claims on duty relief for pulses and a $500 billion purchase commitment. The updated document drops references to tariff concessions on pulses and softens language on procurement, reflecting India’s firm stance on protecting its agricultural and economic interests

Dr Vishnu AravindDr Vishnu Aravind
Feb 12, 2026, 12:30 pm IST
inUSA, Bharat, World, International Edition
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India's Prime Minister Narendra Modi and the US President Donald Trump

India's Prime Minister Narendra Modi and the US President Donald Trump

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New Delhi: The United States administration under Donald Trump has made key revisions to the official fact sheet on the landmark trade framework between India and the US, removing contentious claims that had sparked concern in New Delhi.

Among the most significant changes is the withdrawal of an earlier assertion that India would reduce import duties on pulses, along with a softening of language surrounding the proposed purchase of $500 billion worth of US goods. The White House had initially stated that India would provide tariff relief on pulses, a claim strongly disputed by Indian officials, who clarified that these items were never part of the interim trade understanding. Following firm diplomatic engagement, the term “pulses” has now been completely removed from the revised documents.

This correction has helped clear lingering confusion around the deal. India is the world’s largest producer and consumer of pulses, including peas, dry beans and related crops. To safeguard domestic farmers, New Delhi maintains tariffs on US imports in these categories. The updated US fact sheet signals that India’s position has been acknowledged, reflecting a diplomatic win for the country’s agricultural interests.

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US eases trade language, protects India’s core interests

The US administration has also moderated its language on procurement commitments. The revised documents now state that India is intended to purchase up to $500 billion worth of US products, rather than presenting it as a firm obligation. Crucially, agricultural goods have been excluded from this list. Reports suggest that negotiations in sectors such as energy, information technology and coal will continue to move forward. Agriculture remains the backbone of India’s economy, contributing roughly one-fifth of the national GDP. The sector is projected to grow to $1.4 trillion by 2035.  Opening it fully to cheap foreign imports could destabilise domestic markets and harm millions of small farmers. This explains India’s consistent reluctance to liberalise agricultural trade.

Washington has also shown flexibility on India’s Digital Services Tax. While earlier statements suggested that India would scrap the levy, the revised fact sheet now notes that both sides have agreed to hold bilateral discussions on non-discriminatory digital trade rules instead. This shift is being seen as an important step toward preserving India’s economic autonomy in the rapidly evolving digital economy. Overall, the updated language reflects a more balanced approach, addressing Indian concerns while keeping broader trade talks on track.

 

Topics: US-India relationsIndia-US trade dealTrade Negotiationspulses tariffagricultural protectionDigital Services Taxbilateral trade framework
Dr Vishnu Aravind
Dr Vishnu Aravind
Dr Vishnu Aravind is a researcher, political commentator and writer based in New Delhi, with a PhD from Jawaharlal Nehru University (JNU). His areas of interest include international politics, Indian foreign policy, electoral politics, election analysis, political developments, and cultural affairs. [Read more]
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