What Happened
- The White House revised its factsheet on the India-US interim trade framework twice within hours of the original publication on February 9, 2026, after New Delhi flagged the inclusion of items and wordings that were not part of the agreed framework.
- The first revision removed "certain pulses" from the list of agricultural products on which India would reduce tariffs.
- The second revision changed the language on India's $500 billion purchase commitment from "India committed to buy" to "India intends to buy," and removed "agricultural" from the product category list (retaining energy, ICT, coal, and other products).
- The reference to India removing its "digital services tax" was also dropped from the revised factsheet; it now only states that India has committed to negotiating bilateral digital trade rules.
Static Topic Bridges
Interim Trade Agreements vs Comprehensive FTAs under WTO Law
The India-US deal is structured as an "interim agreement" -- a stepping stone toward a full Bilateral Trade Agreement (BTA). Under WTO rules, specifically Article XXIV of GATT, members can extend preferential tariff treatment to each other outside the MFN principle only if they are forming a customs union or free trade area. An interim agreement is permitted as a transition mechanism, but it must include a plan and schedule for achieving the full FTA within a "reasonable length of time."
- GATT Article XXIV:5(c) governs interim agreements; requires a plan and schedule for FTA formation
- The "reasonable length of time" should generally not exceed 10 years (WTO Understanding on Article XXIV, para 3)
- Article XXIV:8(b) requires FTAs to eliminate duties on "substantially all the trade" -- there is no agreed quantitative threshold, but the benchmark is generally understood as 85-90% of tariff lines
- India's existing trade agreements include: India-UAE CEPA (signed 2022, negotiated in 88 days), India-Australia ECTA (2022), India-ASEAN FTA (2010), India-Japan CEPA (2011)
- The India-US interim deal is India's first trade agreement with the United States in any form
Connection to this news: The factsheet revisions highlight the gap between what the US initially claimed the deal contained and what was actually agreed. For WTO compliance, the interim agreement must eventually be notified and its terms would be subject to scrutiny by the Council for Trade in Goods.
India's Equalisation Levy (Digital Services Tax)
India introduced the Equalisation Levy in 2016 under the Finance Act, 2016, commonly known as the "Google Tax." It was designed to tax the digital economy activities of non-resident companies that earned revenue from India without having a physical presence. The levy was a point of friction in India-US bilateral relations and was investigated by the US under Section 301 of the Trade Act of 1974.
- 2016: India imposed a 6% Equalisation Levy on online advertisement services by non-resident entities (Finance Act, 2016, Chapter VIII)
- April 2020: Expanded to a 2% levy on e-commerce supply of goods and services by non-resident operators (Finance Act, 2020)
- August 1, 2024: The 2% e-commerce Equalisation Levy was abolished
- April 1, 2025: The 6% online advertisement Equalisation Levy was scrapped through Finance Bill 2025
- The abolition was linked to the OECD/G20 Inclusive Framework's two-pillar solution for taxing the digital economy (Pillar One on reallocation of taxing rights, Pillar Two on global minimum tax)
- The US had launched a Section 301 investigation into India's digital services tax in 2020 and threatened retaliatory tariffs
Connection to this news: The original White House factsheet claimed India would "remove its digital services tax" as part of the deal. However, India had already abolished both components of the Equalisation Levy before the deal (August 2024 and April 2025). The revised factsheet dropped this claim, suggesting it was an attempt to take credit for an action India had already taken independently.
Joint Statements vs Factsheets in International Diplomacy
In international relations, a joint statement is a diplomatic document agreed upon and issued by both parties, while a factsheet is a unilateral document prepared by one government summarising its understanding of an agreement. Joint statements carry greater diplomatic weight as they represent mutual commitment. Factsheets, being unilateral, can contain interpretive framing that the other party may not endorse.
- The India-US Joint Statement was issued on February 6, 2026, from the White House and was the mutually agreed text
- The White House factsheet was a separate, unilateral US document titled "Fact Sheet: The United States and India Announce Historic Trade Deal"
- In diplomatic protocol, joint statements use language agreed word-by-word by both foreign ministries
- Factsheets are prepared by the issuing government's communications team and may contain aspirational or interpretive framing
- The distinction is important: "committed" (in the original factsheet) implies a binding obligation, while "intends" (in the revised version) signals a political aspiration without legal commitment
Connection to this news: The two revisions to the White House factsheet illustrate the distinction between jointly agreed positions and unilateral characterisations. India reportedly objected to the original factsheet's language because it went beyond what was agreed in the joint statement, particularly on pulses, the $500 billion figure, and digital services tax removal.
Key Facts & Data
- White House factsheet published: February 9, 2026; revised twice within hours
- Key removal: "certain pulses" dropped from agricultural tariff reduction list
- Language change: "India committed to buy" changed to "India intends to buy" $500 billion in US products
- Product categories retained: energy, ICT, coal, and other products; "agricultural" removed from the $500 billion category list
- Digital services tax reference: removed from revised factsheet (India had already abolished both Equalisation Levy components by April 2025)
- India-US Joint Statement date: February 6, 2026
- India's Equalisation Levy history: 6% on digital ads (2016-2025), 2% on e-commerce (2020-2024)
- India's first-ever trade agreement with the United States