White House Confirms India’s Commitment to New Bilateral Digital Trade Framework

In a major development for global digital trade, the White House confirmed that India will remove its digital services tax and work with the United States to establish a comprehensive set of bilateral digital trade rules. This decision is expected to enhance market access, reduce trade frictions, and promote fair competition in the digital economy.

Key Highlights

• Policy Change: India to eliminate its digital services tax, previously applied to digital advertisements and services.
• Bilateral Commitment: India and the U.S. will negotiate robust digital trade rules to ensure transparency and reciprocity.
• Economic Impact: Move expected to boost investor confidence and strengthen cross-border digital commerce.
• Strategic Importance: Reinforces U.S.-India partnership in trade, technology, and innovation.
• Global Context: Aligns with broader efforts to modernize trade frameworks and support resilient supply chains.

This landmark decision is anticipated to benefit both nations by fostering innovation, reducing barriers for digital companies, and setting a precedent for future global digital trade agreements.

Sources: White House Joint Statement, CCIA release, Economic Times