US India Trade Deal: Map Row Over PoK, Aksai Chin Sparks Tension as Tariff Rollbacks Boost Exports
Digital Desk
US India trade deal update: PoK map removed, pulses dropped from list, Russian oil tariff rollback offers ₹40,000 cr relief. Key benefits for Indian exporters revealed.
In a surprise twist to the freshly inked US India trade deal, the US Trade Representative's office quietly deleted a social media post featuring a map of India that included Pakistan-occupied Kashmir (PoK) and Aksai Chin as Indian territory. This PoK map removal has ignited diplomatic buzz, highlighting ongoing border sensitivities amid strengthening economic ties.
The map showed the entire Jammu and Kashmir region, including PoK, and Aksai Chin—claimed by China—as part of India. Posted shortly after last week's trade pact announcement, it was scrubbed without explanation, fueling speculation in New Delhi.
Major Changes in US Fact Sheet on US India Trade Deal
The White House also revised its fact sheet on the US India trade deal, softening key commitments. Pulses vanished from India's tariff reduction list—no longer mentioning cuts on US agricultural imports like these. The $500 billion purchase pledge shifted from "committed" to mere "intends to," dialing back expectations.
Digital services got a breather too. India won't scrap its tariff outright; talks on digital trade rules are now on the table. Energy, ICT, coal, and select goods remain focal points.
Russian Oil Tariff Rollback: Big Win for India
A major relief package emerged with the Russian oil tariff rollback. The US rolled back its 25% penalty on Indian imports of Russian oil from August 27, 2025, to February 6, 2026—potentially refunding ₹40,000 crore. Refunds go to US importers first, who'll negotiate shares with Indian firms under Customs law. Exact payouts remain unclear.
President Donald Trump formed a three-minister task force—Commerce, Foreign, and Finance—to watch India's Russian oil imports. Violations could reinstate penalties.
India Export Benefits from the US India Trade Deal
This deal opens doors to America's $30 trillion market, supercharging India export benefits:
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Tariff cuts up to 18% on Indian goods for better US access.
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Zero tariffs on generic drugs, gems, diamonds, and aircraft parts.
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Boost for textiles, leather, plastics, chemicals, handicrafts, and machinery.
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Section 232 exemption for aircraft parts; quota for auto components.
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Easier rules for generic pharma.
MSMEs, farmers, fishers, women, and youth stand to gain big.
Why now? With global trade wars raging and India's economy eyeing $5 trillion, this US India trade deal arrives amid Trump 2.0's "America First" push. The PoK map removal underscores geopolitical tightropes, but Russian oil tariff rollback and export perks signal pragmatic wins. Experts like former diplomat S Jaishankar note it balances security with commerce—vital as India diversifies from China.
