India-US Trade Deal Update: US Drops Pulses, Eases $500 Billion Commitment Language

The Donald Trump administration has revised its official factsheet outlining the “key terms” of the “historic” India -US trade deal, quietly removing references to tariff cuts on “certain pulses” and softening language around India’s $500 billion purchase “commitment.”

These changes to the India-US trade deal factsheet are significant, especially because agricultural imports such as pulses remain politically and economically sensitive for India’s farm sector. The revisions suggest behind-the-scenes negotiations may have reshaped how the agreement is being presented.

Revision on Pulses in the India-US Trade Deal

In the earlier version released by the White House on Tuesday, “certain pulses” were clearly listed among products for which India would reduce or eliminate tariffs under the India-US trade agreement.

The statement had said:

"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, certain pulses, soybean oil, wine and spirits, and additional products,"

However, in the updated factsheet, the reference to pulses has been removed. The revised text now reads:
"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."

The removal of pulses from the India-US trade deal factsheet is particularly noteworthy. India is the world’s largest producer and consumer of pulses, including lentils, chickpeas and dry beans. To safeguard Indian farmers, New Delhi has traditionally imposed substantial tariffs on American pulse imports.

This change suggests that India may have pushed back against the earlier characterisation of tariff concessions in the agriculture sector.

“Agricultural Goods” and $500 Billion Commitment Language Altered

The Trump administration has also revised language related to agricultural goods and India’s purchase “commitment” under the India-US trade pact.

In the earlier factsheet, the wording was firm:
"India committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products."

In the revised version, two key changes stand out. First, agricultural products are no longer mentioned. Second, the word “committed” has been replaced with “intends.”

The updated statement now reads:
"India intends to buy more American products and purchase over $500 billion of US energy, information and communication technology, coal, and other products."

This shift from “committed” to “intends” subtly changes the tone of the India-US trade agreement. It reduces the binding nature of the statement and removes explicit reference to agricultural goods, which remain a politically sensitive area.

India’s agriculture sector accounts for roughly one-fifth of the country’s GDP. According to a June report by McKinsey & Co., the agri sector is currently valued between $580 billion and $650 billion and could grow to $1.4 trillion by 2035.

Given this scale, New Delhi has consistently resisted fully opening the agriculture sector, citing concerns that increased imports could intensify pressure on domestic farmers in a highly competitive market.

No Removal of Digital Services Taxes in Revised Factsheet

Another notable revision involves digital services taxes. The earlier version of the White House factsheet stated:

"India will remove its digital services taxes and committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade, including rules that prohibit the imposition of customs duties on electronic transmissions."

In the updated version, the reference to removing digital services taxes has been dropped. The revised text now says:

"India committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade."

This change signals that India has not formally agreed, at least in this document, to eliminate its digital services taxes as part of the India-US trade deal framework.

What Triggered the Changes?

The revisions came shortly after Congress President Mallikarjun Kharge criticised the BJP-led central government over the framework of the Interim Trade Agreement with the United States.

Kharge alleged that the India-US trade pact undermined India’s strategic autonomy and could hurt farmers, cattle interests and the textile sector. He described the deal as a "PR-wrapped betrayal" and questioned whether it truly safeguards India’s strategic and economic interests.

He also raised concerns about agriculture, claiming that pulses and genetically modified feed such as dried distillers' grains (DDGs) and red sorghum for animal feed had been quietly included in the agreement.

Kharge further pointed to differences between the White House factsheet and the earlier Indo-US Joint Statement.

"We were told that the Indo-US Joint Statement said nothing on Russian oil, even though Mr. Trump publicly tweeted otherwise. Now the White House fact sheet clearly lists "India's commitment to stop purchasing Russian Federation oil" as a condition for removal of an additional 25 per cent tariff. The Modi government agreed to this erosion of India's sovereignty. Why? The Congress party had already exposed the Executive Order placing India under US monitoring for direct or indirect oil imports," he said in a post on X.

India’s Official Position on the Trade Deal

Following the announcement of the India-US trade deal, the Centre reassured Indian farmers that their interests were fully protected. Commerce Minister Piyush Goyal emphasised that sensitive sectors had not been opened under the agreement.

"The farm sector hasn't been opened fully," Goyal said, adding that sectors where India is self-sufficient have been kept outside the deal.

"I can say with absolute certainty that our farmers, artisans, and handloom industry will not suffer any harm,"

He described the trade deal as "fair, equitable, and balanced."

Goyal also clarified that no concessions had been given on items considered sensitive in India, reinforcing the government’s position that the India-US trade agreement does not compromise core domestic interests.