A few days after India and the US announced a framework for an interim trade agreement, the White House released a fact sheet on Monday giving more details. It shows that India will reduce or remove tariffs on a wide range of American goods, including industrial items, food, and agricultural products. Interestingly, the fact sheet mentions “certain pulses”, which were not included in the earlier joint statement on February 6.
India to import certain pulses from US under trade deal
“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,” states the Fact Sheet: The United States and India Announce Historic Trade Deal released by the White House on February 9.
This comes after the White House hailed the India-US trade deal as a historic moment, saying it will open up India’s market of over 1.4 billion people to American products. “This announcement provides a tangible path forward with India that underscores the President’s dedication to realizing balanced, reciprocal trade with an important trading partner,” the White House said in its release.
Difference from February 6 statement
On February 6, the two words were visibly missing from the joint statement, which detailed the “key terms” of the interim agreement between the US and India.
“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 for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” the joint statement issued on February 6 said.
The mention of certain pulses is important to note as it signals a new opening in India’s agricultural market for US farmers, expanding beyond products listed in the earlier joint statement.
In return it claims, India will also benefit from lower duties on its exports to the US. This includes textiles and garments, leather and footwear, plastics and rubber products, organic chemicals, home decor items, artisanal goods, and certain machinery.
The February 6 joint statement following a call between US President Donald Trump and Indian Prime Minister Narendra Modi listed similar items but did not include pulses. It mentioned:
- DDGs
- Red sorghum for animal feed
- Tree nuts
- Fresh and processed fruits
- Soybean oil
- Wine and spirits
- Other products
The earlier statement focused on reciprocal trade and reaffirmed commitment to the US-India Bilateral Trade Agreement (BTA), but the pulses mention is a new addition in the White House fact sheet.
India’s Agriculture Minister clarifies restrictions
On February 8, Union Agriculture Minister Shivraj Singh Chouhan told reporters in Bhopal which products will not enter India under the trade deal. These include:
- Hulled grains, flour, wheat, corn, rice, millet
- Potato, onion, peas, beans, cucumber, mushrooms
- Pulses, frozen vegetables
- Oranges, grapes, lemons, strawberries
- Mixed canned vegetables
Even though pulses are listed in the White House fact sheet, India is maintaining restrictions on certain types, trying its best to balance domestic agriculture needs with new trade openings.
Key highlights from the White House fact sheet
India has also agreed to increase imports from the US, targeting purchases of more than $500 billion across energy, information and communication technology, farm goods, coal, and other categories. The joint statement also mentions India’s commitment to address non-tariff barriers that affect trade in priority areas, making it easier for American companies to operate in India.
- Both countries will work on rules of origin to ensure trade benefits mainly accrue to the US and India.
- India has agreed to end its digital services taxes and pursue new bilateral digital trade rules to prevent discriminatory or burdensome measures.
- The two sides will coordinate more closely on economic security, supply chain resilience, and investment reviews, including export controls.
- A significant increase in two-way trade in technology products is expected.