India Will Remove Digital Services Taxes: US

The United States Fact Sheet: India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. 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.

FinTech BizNews Service

Mumbai, 10 February 2026: Last Friday, in a Joint Statement, President Donald J. Trump announced a trade deal between the United States and India that will open up India’s market of over 1.4 billion people to American products. 

As per the Fact Sheet, released by the Whitehouse, following claims have been made:

• Friday’s Joint Statement follows a call between President Trump and Indian Prime Minister Narendra Modi last week, in which the leaders reached a framework for an Interim Agreement on reciprocal trade and reaffirmed their commitment to broader U.S.-India Bilateral Trade Agreement (BTA) negotiations.  
• Also on the call, President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff.
• Given India’s willingness to align with the United States to confront systemic imbalances in the bilateral trade relationship and shared national security challenges, the United States will lower the Reciprocal Tariff on India from 25% to 18%.
• The key terms of the Agreement include:
  • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. 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.
  • India committed to buy more American products and purchase over $500 billion of U.S. energy, information and communication technology, agricultural, coal, and other products. 
  • India will address non-tariff barriers that affect bilateral trade in priority areas. 
  • The United States and India will negotiate rules of origin that ensure that the agreed benefits accrue predominately to the United States and India.
  • 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. 
  • The United States and India committed to strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non-market policies of third parties as well as cooperating on inbound and outbound investment reviews and export controls.
  • The United States and India will significantly increase bilateral trade in technology products and expand joint technology cooperation.