On February 7, the two countries issued a joint statement finalising a framework for the first phase of the bilateral trade agreement.
Also read: India-US Trade Deal Fact Sheet: Beyond pulses and ‘intent’, there’s another big change you may have missed
As per that statement, the US and India have committed to addressing discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA.
“We have not discussed digital trade at all in the first tranche. The chapter will only be negotiated as part of the BTA,” the official said.
Last year, India withdrew the 2 per cent equalisation levy or digital tax on overseas e-commerce supplies.
The US firms are keen to tap into the fast-growing digital trade sector of India.